TAILOR MADE
Title and this page: DHL also logistically
supports the well-known German fashion
designer Michael Michalsky. He has even
designed a collection made of packaging
materials.
To our Shareholders
In today’s age, tailored logistics services are a key to success for companies in many
industries. We are proficient in this business and are determined to offer every customer
precisely the service they need to be successful. Doing this means facing a wide range
of challenges, even within one industry. We illustrate this on the following pages using
the example of the fashion industry, a sector in which Deutsche Post DHL is one of the
leading international logistics providers.
We are more than aware that our success is reliant on the success of our customers. It
is therefore not without pride that I can report that we achieved all of the goals we set
ourselves for 2013. What’s more, we did so despite the fact that the market recovery
hoped for failed to materialise and that we suffered from major negative currency effects.
Deutsche Post DHL increased profit from operating activities in financial year 2013 to
€2.86 billion, due to improved margins. Consolidated revenue declined slightly to around
€55.1 billion, largely due to negative currency effects. It was particularly pleasing to see
that our most important drivers of growth, the parcel business and the international
express business, remain intact.
The dynamic parcel business in Germany, for instance, contributed to the positive business
development in the MAIL division. International business performance in the DHL divisions
was largely impeded by negative currency effects. Although revenue was lower, we were
still able to increase earnings in the EXPRESS and SUPPLY CHAIN divisions through strict
cost management. The freight forwarding business, however, declined in an appreciably
weakened market. In addition, EBIT in the GLOBAL FORWARDING, FREIGHT division included
expenses for the New Forwarding Environment strategic project, with which we have
already made good progress.
For the first time, we set ambitious cash flow targets for 2013 and we have clearly
achieved them. After reporting a cash outflow in the prior year, operating cash flow has
now improved to €2.99 billion. Furthermore, the Group’s good financial position is also
demonstrated by the favourable refinancing conditions we were offered on the capital
market. For instance, in the reporting year we renewed a long-term credit facility early
and at more favourable terms; we also issued two bonds with a total volume of €1 billion.
For my part, achieving our ambitious cash flow target is also a good example of what our
employees are able to accomplish when they concentrate on our most important objec-
tives – objectives as set out in our medium-term Group strategy. Since 2009, our “Strategy
2015” has been the framework for our endeavours to become the provider, employer and
investment of choice.
With a network that spans the globe and outstanding market positions in the world’s
growth markets, we are a strong and reliable partner for our customers. We invest con-
tinually in the expansion of our infrastructure as well as our products and services.
As we move towards the goal of becoming employer of choice, we measure our progress
using an annual Group-wide employee opinion survey. The results indicate high approval
for our key performance indicators.
In addition to solid financial results, I am especially pleased that our performance is also
reflected in the growing confidence shown to us by the capital market. Our share price
outperformed the DAX for the third consecutive year and in May we shall propose to the
Annual General Meeting that the dividend we pay to you be raised to €0.80 per share.
This represents a payout of around 49 % of adjusted net profits.
In the current financial year, we expect slight economic expansion at best. The global
trading volumes relevant to our business are expected to perform similarly and impact
our revenue accordingly, particularly in the DHL divisions. Against this backdrop, we
expect consolidated EBIT to reach between €2.9 billion and €3.1 billion in financial year
2014. The MAIL division is likely to contribute around €1.2 billion to this. Compared with
the previous year, we expect an additional improvement in overall earnings to between
€2.1 billion and €2.3 billion in the DHL divisions. Operating cash flow is expected to see
further positive development in line with the respective EBIT trend.
Furthermore, we remain confident that we shall achieve the objectives we have set for
ourselves in ”Strategy 2015”. Overall, we continue to anticipate an increase in consoli-
dated EBIT to between €3.35 billion and €3.55 billion in 2015. The MAIL division is likely to
contribute at least €1.1 billion, whilst the DHL divisions are expected to contribute between
€2.6 billion and €2.8 billion. We have adjusted the anticipated earnings contributions
following the consolidation of parts of the domestic parcel business outside Germany
within the MAIL division at the beginning of 2014.
Fashion is not the only industry in which today’s end customers decide spontane-
ously to make purchases in store, from a catalogue, at their computer or on their
smartphone. E-commerce and the B2C business associated with it will continue to
boost our parcel business and open up many possibilities even beyond the 2015
strategic perspective.
DR FRANK APPEL
CHIEF EXECUTIVE OFFICER
MARCH 2014
10,780
Stephan Grünewald.
4,080
Source: BHV
Electronic items
1,510
1,920 Textiles (excluding clothing)
960
Consumer electronics
1,620
Household appliances
1,880
Shoes 2,500
Hobby, collecting
and leisure articles
Preferred location
DHL collection service Upon request, we deliver items to customers
This simple and convenient service allows cus- even if they are not at home. They stipulate a
tomers to have their parcels and small packages concealed place on their property where we can
collected by one of our couriers from their home leave the parcel when they are not in.
or any specified address – nationwide in Germany.
dhl.de/abholung
Preferred neighbour
Alternatively, customers may nominate someone
DHL Packstation in their immediate neighbourhood with whom we
Packstation users can send and receive parcels can leave their parcels if they are not at home.
day and night. Gone are the days of waiting for
a courier or worrying about opening hours. There An overview of all recipient services is available at:
are now around 2,650 Packstations available paket.de
throughout Germany. dhl.de/packstation
Fashion is a fast-moving business. and then order it via their hand-held turn, throws up its own questions:
Today’s must-have could be tomorrow’s device.” Shoppers can also decide Should these articles be added to the
overstock. Online retail has taken this whether purchases should be delivered local inventory or brought to a central
to the next level as consumers are in- to their home, to the store or any other warehouse? “A lot of new processes
creasingly freed from the constraints collection point. and booking procedures are involved
of time and place, and schedules for This style of shopping has funda as well as critical monetary issues,”
getting new goods to market are ever mentally changed the world of inven- says Carsten Schmelting.
tighter. For logistics providers like tory management. “In the past, brands
DHL, this means that the pressure to often separated the online and offline
40,000
increase speed while lowering costs is world, with separate systems and in-
becoming more intense. ventories being the norm,” comments
Meeting this challenge requires Beelen. “Nowadays, there is a strong
agility within an optimised cost struc- desire to integrate and handle both
ture – and in the fashion industry, environments with a single system and square metres of space make up
this applies to logistics providers and out of one inventory.” Store managers the new DHL logistics centre
manufacturers alike. That was the can use tracking systems at any time to geared specifically for Tom Tailor.
conclusion of a DHL white paper based follow the progress of a specific item DHL broke ground in 2013.
on the findings of a “Fashion Master along the chain. This allows goods in
Class” workshop held in May, 2013. DHL transit to be considered “on-hand in-
invited executives from brands like ventory”, able to be sold to customers. a
Adidas, Levi Strauss & Co. and the Tom
Tailor Group to discuss strategies on A logistics challenge
the future of fashion logistics. The gen- “Keeping both transparency and
eral consensus: the demand for speed, control of inventory and m erchandise
flexibility, responsiveness and control flow are the real challenges for logis-
in the supply chain is greater than ever tics,” agrees Carsten Schmelting, re-
before. sponsible for supply chain manage-
The paper’s author, Lisa H
arrington ment at G erman clothing manufacturer
of the strategic s upply chain consult- Tom Tailor. The company produces
ing firm lharrington group LLC, sees twelve different collections a year for
a number of trends that are radically each of its eleven clothing lines, manu
changing the fashion landscape. factured predominantly in Asia. It sells
them both retail and wholesale, and
Increasing fluidity between increasingly via online shops in 21
online and offline countries. Since 2008, DHL has been a
One of these is omni-channel re- third-party logistics provider for major
tailing, in which modern consumers parts of the Tom Tailor operation.
40
switch seamlessly between purchasing With Tom Tailor’s online sales
items at online and brick-and-mortar growing and its stationery distribution
stores. “Nowadays, one in ten online network spreading, the two channels
orders is now issued from within a are becoming increasingly integrated.
store,” explains Marcel Beelen, Vice For example, the company is currently million units were processed
President Business Development, DHL examining whether it could be possible by DHL Supply Chain for Tom
Fashion & Lifestyle Europe, “meaning for customers to return items ordered Tailor in 2013.
customers notice an item in a shop online, directly to stores. But this, in
Deutsche Post is Europe’s largest postal service provider, the market leader on the German letter and parcel market and has a
leading position in international mail. Its portfolio ranges from standard products to environmentally-friendly and tailored solu-
tions for consumers and business customers in the areas of mail communication, dialogue marketing and transporting parcels.
MAIL
Business units and products Customers
Global Mail
Mail import and export
Cross-border mail and parcels
Mail services in domestic markets
outside of Germany
Special services
Pension Service
Database administration
Payment processes
With its expertise in the cross-border express business, air and ocean freight, road and rail transport and contract logistics, DHL is the
market leader in the international logistics industry. With a global network and local expertise as well as a commitment to service and
quality we provide solutions tailored to customer requirements in more than 220 countries and territories.
GLOBAL FORWARDING,
EXPRESS FREIGHT SUPPLY CHAIN
Products Products Supply Chain
b CORPORATE GOVERNANCE
107 – 132
d FURTHER INFORMATION
215 – 224
a GROUP MANAGEMENT REPORT
Contents
1 To our Shareholders 21 General Information
4 Tailor Made 43 Report on Economic Position
16 Our Business 71 Deutsche Post Shares
18 Selected Key Figures 74 Non-Financial Figures
87 Post-Balance-Sheet Date Events
88 Opportunities and Risks
101 Expected Developments
b
CORPORATE GOVERNANCE
109 Report of the Supervisory Board
113 Supervisory Board
114 Board of Management
116 Mandates
117 Corporate Governance Report
c CONSOLIDATED
FINANCIAL STATEMENTS
135 Income Statement
136 Statement of Comprehensive Income
137 Balance Sheet
138 Cash Flow Statement
139 Statement of Changes in Equity
140 Notes to the Consolidated Financial Statements
213 Responsibility Statement
214 Independent Auditor’s Report
d
FURTHER INFORMATION
217 Index
218 Glossary
219 Graphs and Tables
220 Locations
222 Multi-Year Review
224 Contacts
Cross-references
224 Publication Service
Websites Financial Calendar
SELECTED KEY FIGURES
CONTENTS
01 SELECTED KEY FIGURES
GENERAL INFORMATION
21 Business model and organisation
24 Business units and market positions
31 Objectives and strategies
36 Group management
38 Disclosures required by takeover law
42 Remuneration of the Board of Management
and the Supervisory Board
42 Research and development
GENERAL INFORMATION
Deutsche Post DHL is the world’s leading mail and logistics services group. The
eutsche Post and DHL corporate brands represent a one-of-a-kind portfolio of logistics
D
(DHL) and communications (Deutsche Post) services. We provide our customers with both
easy to use standardised products as well as innovative and tailored solutions ranging
from dialogue marketing to industrial supply chains. About 480,000 employees in more than
220 countries and territories form a global network focused on service, quality and sustain-
ability. With programmes in the areas of environmental protection, disaster management
and education, we are committed to social responsibility.
GLOBAL
Finance, Global FORWARDING,
CEO Business Services Human Resources MAIL EXPRESS FREIGHT SUPPLY CHAIN
Board member Board member Board member Board member Board member Board member Board member
• Dr Frank Appel • Lawrence Rosen • Angela Titzrath • Jürgen Gerdes • Ken Allen • Roger Crook • Bruce Edwards
Functions Functions Functions Business units Regions Business units Business units
• Board Services • Corporate Controlling • HR MAIL • Mail Communi- • Europe • Global • Supply Chain
• Corporate First Choice • Corporate Finance • HR EXPRESS cation • Americas Forwarding • Williams Lea
• Corporate Legal • Global Business • HR GLOBAL • Dialogue • Asia Pacific • Freight
• Customer Solutions & Services: Procure- FORWARDING, Marketing • MEA (Middle
Innovation ment, Real Estate, FREIGHT • Press Services East and
• Corporate Office Finance Operations, • HR SUPPLY CHAIN • Parcel Africa)
• Corporate Legal Services, etc. • HR Headquarters & Germany
Development • Investor Relations International Services, • Retail Outlets
• Corporate Heritage & • Corporate Account- GBS & CSI • Global Mail
Industry Associations ing & Reporting • Corporate Executives & • Pension Service
• Corporate Commu- • Corporate Audit & Talent Management
nications & Respon- Security • Industrial Relations,
sibility • Taxes Civil Servants
• Corporate Public • Compensation &
Policy & Regulation Benefits
Management • HR Performance &
Programs
Organisation in Human Resources board department adjusted
We made adjustments to the Human Resources board department in the reporting
year in order to meet changed requirements across all business units. It now comprises
the functions “HR MAIL”, “HR EXPRESS”, “HR GLOBAL FORWARDING, FREIGHT”, “HR
SUPPLY CHAIN”, “HR Headquarters & International Services, GBS & CSI”, “Corporate
Executives & Talent Management”, “Industrial Relations, Civil Servants”, “Compensa-
tion & Benefits”, and “HR Performance & Programs”.
Global Germany
Air freight (2012): 24m tonnes 2 Mail communication (2013): €4.5bn 6
Ocean freight (2012): 34m TEU s 3 Dialogue marketing (2013): €17.2bn 6
Contract logistics (2012): €159bn 4 Parcel (2013): €8.2bn 6
International express market (2011): €22bn 5
1
Regional volumes do not add up to global volumes due to rounding.
2
Data based solely on export freight tonnes. Source: Copyright © IHS, 2013. All rights reserved.
3
Twenty-foot equivalent units; estimated part of overall market controlled by forwarders.
Data based solely on export freight tonnes. Source: Copyright © IHS, 2013. All rights reserved.
4
Source: Transport Intelligence.
5
Includes express product Time Definite International. Country base: AT, BE, CH, CZ, DE, DK, ES, FR, IL, IT,
NL, NO, PL, RU, SE, TR, UK (Europe); AR, BR, CA, CL, CO, CR, MX, PA, VE, US (Americas); AU, CN, HK, ID, IN,
JP, KR, MY, NZ, SG, TH, TW, VN (Asia Pacific); AE, ZA (Middle East /Africa). Latest available market study.
Source: Market Intelligence, 2012, annual reports and desk research.
6
Company estimates.
7
Country base: total for 19 European countries, excluding bulk and specialties transport.
Source: MRSC MI Freight Reports 2008 to 2012, Eurostat 2010.
network. We also partner with publishers to sell subscriptions to more than 500 press A.05 Domestic press services
market, 2013
products both online and offline as part of our Deutsche Post Leserservice, a service that
Market volume: 14.8 billion items
has seen much success.
11.4 % Deutsche Post
The German press services market had a total volume of 14.8 billion items in 2013, a
decline of 2.0 % from the prior year. Consumer and specialist magazine circulation, in par-
ticular, has decreased. Our competitors are mainly companies that deliver regional daily
newspapers. In an overall shrinking market, we continued to maintain our share at 11.4 %.
delivery time as well. Our courier service even provides same-day parcel delivery and
evening delivery within a delivery window of the customer’s choice.
We are expanding the logistics platform, allowing business customers to grow their 42.3 % DHL
online retail business even more quickly: small and medium-sized retailers can take
advantage of an additional sales channel at our shopping portal, MeinPaket.de. On
request, we can even cover the entire supply chain – from warehouse logistics to r eturns
management. We are developing the online food retailing segment at our online super 57.7 % Competition
We set ourselves apart from the competition by offering innovative products. For
example, we are developing international shipping solutions for private consumers
(B2C) in the growing e-commerce sector. This now includes a returns solution for
24 European countries. Our offer also comprises consulting and services for all phys
ical and digital dialogue marketing needs. Furthermore, we offer international physical,
84.2 % Competition
hybrid and electronic written communications for international business customers,
giving them the flexibility to decide what best suits their needs. Foreign customers tap Source: company estimate.
into our e xpertise and experience in order to do business successfully in the German
market. The global market volume for outbound international mail was approximately
€6.7 billion in 2013 (previous year: €6.8 billion). The decline in light-weight letters and
press products could only be compensated for in part by the increase in heavier items.
Our market share remained stable at the prior-year level of 15.8 %.
EXPRESS DIVISION
30 % UPS
Asia remains an important market
Asia remains an important and profitable market for us and it is expected that our
leading position will have been further solidified there in the reporting year.
At our North Asia Hub in Shanghai, we are the first company in the region to be 50 % FedEx
permitted to offer the sorting of international transit shipments, a service which we have
1
Includes the TDI express product.
provided since the fourth quarter of 2013. This not only expands our service but also 2
Country base: AR, BR, CA, CL, CO, CR, MX, PA,
improves the utilisation of the hub. 3
VE, US.
Latest available market study.
Source: Market Intelligence 2012, annual reports
and desk research.
Reliable partner in the Middle East
Business in the Middle East remained particularly difficult in the reporting year,
given the political unrest in Afghanistan, Yemen, Bahrain, Libya and Syria. Whilst A.10 Asia Pacific international express
market, 2011 1, 2, 3: top 4
adhering to legal requirements and ensuring the safety of our employees, we maintained
Market volume: €7,487 million
our operations and therefore proved ourselves a reliable partner to our customers.
10 % UPS
We are continuing to strengthen our presence in the Middle East through invest-
14 % EMS
ments in Egypt, Saudi Arabia and Dubai, where we began construction of a logistics
centre in the first quarter of 2013. The facility covering roughly 17,000 m² located near 21 % FedEx
Dubai is intended to improve services for customers who import and export goods
into and out of the United Arab Emirates. Together with our partner, MGE Middle East
General Enterprise L. L. C., we shall invest around €20 million in the location and thus
40 % DHL
further expand our leading position in the area.
1
Includes the TDI express product.
2
Country base: AU, CN, HK, ID, IN, JP, KR, MY, NZ,
SG, TH, TW, VN.
3
Latest available market study.
Source: Market Intelligence 2012, annual reports
and desk research.
A.11 Air freight market, 2012: top 4 The air, ocean and road freight forwarder
Thousand tonnes 1 The Global Forwarding and Freight business units are responsible within the Group
801 Panalpina for air, ocean and road freight transport. Our freight forwarding s ervices not only
include standardised transports but also multimodal and sector-specific solutions as
1,093 Kuehne + Nagel
well as individualised industrial projects.
1,095 DB Schenker Our business model is very asset-light, as it is based on the brokerage of trans-
port services between our customers and freight carriers. This allows us to consolidate
shipments and purchase cargo space at better conditions. Our global presence ensures
2,327 DHL network optimisation and the ability to meet the increasing demand for efficient routing
and multimodal transports.
1
Data based solely on export freight tonnes.
Source: annual reports, publications
and company estimates. The leader in a stagnating air freight market
The air freight market stagnated in 2013 despite a slight volume increase in the sec-
A.12 Ocean freight market, 2012: top 4 ond half of the year compared with the first half. According to IATA, the global airline
Thousand TEU s 1 industry association, worldwide freight tonne kilometres flown during the reporting
1,388 Panalpina year increased only slightly by 1.4 %. Capacities remained largely stable, whereby the
airlines shifted them from cargo planes to wide-body passenger planes as in the prior
1,905 DB Schenker
year. Freight volumes were lower overall due to the decline in output in some industry
sectors. Moreover, customers throughout the industry increasingly chose other trans-
2,840 DHL
port modes. After transporting 2.3 million export freight tonnes in the previous year,
we remained the air freight market leader in 2013.
3,473 Kuehne + Nagel
2.4 % DHL
Growth remains slow in European road freight market
In the European road freight market, growth remained slow at an estimated –1 % to
1 % (previous year: 0 % to 2 %). The primary reasons for this were the macroeconomic
3.4 % DB Schenker
environment in Europe and intense competition in this sector. Nevertheless, DHL’s
1
Country base: total for 19 European countries, Freight business unit was able to maintain its market share.
excluding bulk and specialities transport.
2
2011 and 2012 figures have been adjusted with
respect to the MI study 2012 using current
price information.
Source: MI Study DHL 2013 (based on Eurostat,
financial publications, IHS Global Insight).
A.14 Logistics and value-added services along the entire supply chain
1 2 3 4 5 6
1 Plan – Laying the foundation 3 Make – Supporting product 5 Deliver – Getting it where it
for a supply chain manufacturing needs to be
2 Source – Getting the materials 4 S tore & Customise – Getting it 6 Return – Bringing it back when
at the time required ready to sell it’s not needed
A.15 Contract logistics market, 2012: Global market leader in contract logistics
top 10
DHL remains the global market leader in contract logistics, with a market share of
Market volume: €159 billion
8.2 % (2012). This market is highly fragmented: the top ten players only account for
1 % Ryder
1 % Norbert Dentressangle
around 22 % of the overall market, the size of which is estimated to be €159 billion. We
1 % Neovia lead the market in our key regions of North America, Europe and Asia Pacific and also
1 % Sankyu Inc enjoy a very strong position in rapidly growing markets such as Brazil, India, China and
1 % UPS
1 % SNCF Geodis
Mexico. Thanks to our global expertise and many years of business relationships with
2 % Kuehne + Nagel multinational corporations, we are confident that we shall be able to expand further in
3 % Hitachi
these markets.
3 % CEVA
Williams Lea is the market leader in outsourcing document management and mar-
keting production. This market is also highly fragmented and consists largely of spe-
8 % DHL
cialists offering either a very limited set of services or occupying exclusive niches. Due
Source: Transport Intelligence; figures estimated
to our broad range of international services and long-lasting customer relationships,
except for DHL, CEVA, Kuehne + Nagel, Norbert we again succeeded in building on our leading position during the year under review.
Dentressangle, Ryder and SNCF Geodis; exchange
rates: as at June 2013. Thanks to DHL’s good customer relationships, Williams Lea was able to gain additional
new business.
EXPRESS
supply chain
MAIL division
The following strategic approaches are how we aim to meet the business challenges
of today and tomorrow.
Making costs more flexible: To achieve this goal, we are adapting our networks to
changing market conditions and shipment structures. We are also cutting costs wherever
possible and sensible, whilst investing in growth areas. Furthermore, we want to further
increase the quality of our products, whilst protecting the environment in the process.
For example, we commissioned the development of an electric delivery vehicle that pre-
cisely meets the needs of our delivery staff whilst improving our carbon footprint and
reducing operating costs. Our Parcel 2012 Production Concept has made our sorting
and transport more efficient and thereby lowered costs.
Providing the highest quality to our customers: We want to offer our customers the
best service at all times, at the highest level of quality and at reasonable prices. To this
end, we are modernising the sorting equipment and IT architecture in our mail network
on an ongoing basis. We are also investing in our parcel network and adapting it to in-
creasing volumes on an ongoing basis. Our goal is also to deliver 95 % of all items sent in
Germany to customers the next day. Moreover, we are constantly offering more services
to parcel recipients, for example, package notification, shipment status and preferred
location. Proximity to our customers is important to us, which is why we operate by far
the largest network of fixed-location retail outlets in Germany. We are also expanding
our successful co-operation with retailers, particularly by way of our Paketshops.
Motivating our workforce: The key to high quality and high performance is happy
and dedicated employees. That’s why we equip our workforce with state-of-the-art tools,
provide mail carriers with e-bikes and e-trikes, offer counselling on health issues and, at
some locations, make childcare available. The most recent collective agreement included
another noticeable wage increase, raising our levels even higher above the competition.
Tapping into new online and offline markets: We are taking advantage of our expertise
in physical communications to offer competent digital communications. The internet is
already strongly facilitating customer access to our services, allowing them to calculate
and purchase postage and also locate retail outlets and Packstations online and by mobile
telephone. We are also investing in future growth areas in all our businesses: beyond
our E-Postbrief product, we are active in the growing industry of online a dvertising.
We operate Europe’s largest platform for targeting (online advertising space marketing), Glossary, page 218
provide the largest online German marketplace for journalistic content and are the first
parcel delivery service in Germany to operate its own shopping portal. By acquiring
Allyouneed.com we have established an online supermarket, where together with retail
customers we are trialing same-day food delivery. At MeinPaket.de we offer one of the
largest online marketplaces in Germany. We have taken our expertise in transport and
network management into the deregulated coach market with the ADAC Postbus. In
2014, we shall operate additional lines, and in the future we intend to offer this service
nationwide in Germany.
EXPRESS division
As part of our strategic programme FOCUS, we have expanded our business and
increased our market share in recent years. In the reporting year, our attention was
focused on strengthening our profitability.
Managing revenue and costs: Our return on sales rises when growing volumes lead
to economies of scale in the network; when innovations and automation improve pro-
ductivity and costs are strictly managed. We minimise indirect costs through simplified
and standardised processes. For example, we are streamlining our IT system architecture
step-by-step.
Structuring sales and prices: Using global campaigns, we specifically target small and
medium-sized businesses which could benefit the most from exporting. We concentrate
upon items whose size and weight optimally match our network and thereby create
economies of scale. In terms of our pricing policy, we encourage global co-ordination
and discipline. We also work to continuously improve our customer approach. Our
Insanely Customer Centric Culture initiative is intended to fix problems faster and meet Customers and quality, page 84
customer expectations more effectively.
Managing the network: Most of our costs are attributable to the air and ground net-
work. We replace aeroplanes with newer, more efficient, and thus more cost-saving air-
craft. We sell available cargo space to freight and forwarding companies, thus improving
our network utilisation and reducing costs. On the ground, we are automating and
standardising processes. For instance, vehicles are equipped by default with shelves and
can be loaded directly from the conveyor belt. We also plan our pickup and delivery
routes to maximise time and cost savings.
Motivating our employees: Our established Certified International Specialist (CIS)
training programme ensures that all our employees have the requisite knowledge of
the international express business at their disposal. Training is carried out by our own
employees, including executives, for specific functions as well as on a cross-functional
basis. This adds to mutual understanding whilst reinforcing a team atmosphere and
loyalty within the division. The Certified International Manager (CIM) module is for
managers and is intended to strengthen the unified leadership culture within the divi-
sion. We want to sustainedly motivate our employees around the world. Systematic and
continuous recognition of outstanding performance is one way of contributing to this.
Group management
FINANCIAL PERFORMANCE INDICATORS
A.18 EBIT calculation Profit from operating activities measures earnings power
The profitability of the Group’s divisions is measured using profit from operating
Revenue
a ctivities (EBIT). EBIT is calculated by taking revenue and other operating income and
Other operating income
subtracting materials expense and staff costs, depreciation, amortisation and impairment
Materials expense
Staff costs
losses and other operating expenses. Interest and other finance costs / other financial
Depreciation, amortisation income are deducted from or added to net financial income / net finance costs. To be
and impairment losses able to compare divisions, the return on sales is calculated as the ratio of EBIT to revenue.
Other operating expenses
Profit from operating activities (EBIT)
EBIT after asset charge promotes efficient use of resources
Since 2008, the Group has used EBIT after asset charge (EAC) as an additional key
A.19 EAC calculation performance indicator. EAC is calculated by subtracting a cost of capital component, or
asset charge, from EBIT. Making the asset charge a part of business decisions encourages
EBIT
all divisions to use resources efficiently and ensures that the operating business is geared
Asset charge
towards increasing value sustainably whilst generating cash flow.
= Net asset base
× Weighted average cost of capital To calculate the asset charge, the net asset base is multiplied by the weighted average
EBIT after asset charge (EAC) cost of capital (WACC). The asset charge calculation is performed each month so that
fluctuations in the net asset base can also be taken into account during the year.
All of our divisions use a standard calculation for the net asset base. The key com-
A.20 Net asset base calculation ponents of operating assets are intangible assets, including goodwill, property, plant and
equipment and net working capital. Operating provisions and operating liabilities are
Operating assets
subtracted from operating assets.
• Intangible assets
• Property, plant and equipment The Group’s WACC is defined as the weighted average net cost of interest-bearing
• Goodwill liabilities and equity, taking into account company-specific risk factors in accordance
• T rade receivables
(part of net working capital) with the Capital Asset Pricing Model.
• Other non-recurring operating assets A standard WACC of 8.5 % is applied across the divisions, and this figure also
Operating liabilities
represents the minimum target for projects and investments within the Group. The
• Operating provisions
(without provisions for pensions WACC is generally reviewed once annually using the current situation on the financial
and similar obligations) markets. However, the goal is not to match every short-term change but to reflect long-
• T rade payables
(part of net working capital) term trends. To ensure better comparability with previous years, the EAC was maintained
•O ther non-recurring operating at a constant level in 2013, as in the previous year.
liabilities
Net asset base
Share Matching Scheme for executives, the holding period for the shares will become
invalid with immediate effect in the event of a change of control of the company. In any
such case, the employer will be responsible for any tax disadvantages resulting from
reduction of the holding period. Exempt from this are taxes normally incurred after
the holding period.
Forecast / actual comparison
A.22 Forecast / actual comparison
EAC EAC
€1,499 million (previous year: €1,331 million) 3. Will continue to develop positively and increase
slightly.
1
Forecast increased over the course of the year.
2
Forecast narrowed over the course of the year.
3
Prior-year amounts adjusted due to a revised calculation basis.
4
Explanation Group management, page 37.
Economic parameters
Global economy witnesses very cautious growth
The global economy witnessed very cautious growth in 2013. Growth rates lagged
behind the prior-year figures, which were already only marginal, in the industrial
countries as well as the emerging markets. This was a consequence of a weak phase
at the very start of the year. Although the economy then proceeded to recover – quite
significantly in some industrial countries – overall global economic output grew by just
3.0 % in 2013 after adjustment for purchasing power (previous year: 3.1 %). Global trade
increased slightly with a rise of nearly 3 % (IMF: 2.7 %; OECD: 3.0 %).
Asian countries again generated the highest economic momentum, with gross
domestic product (GDP) increasing by 6.5 % (previous year: 6.4 %). In China, rising
demand in individual industrial countries led to an increase in exports. The govern-
ment also continued its efforts to boost domestic demand. Total GDP growth remained
on a par with the prior year at 7.7 % (previous year: 7.7 %). The Japanese economy grew
sharply in the first half of the year as a result of expansive monetary and fiscal policies.
These effects waned as the year progressed and the upturn abated somewhat. Growth
in private consumption and government spending as well as rising investments led to
significant growth in domestic demand. Exports were up slightly overall on an annual
average. Despite the strong upward trend, GDP only increased by 1.7 % due to the low
initial base (previous year: 1.4 %).
The US economy suffered from government budget cuts and tax increases at the
start of the year. From spring onwards, however, growth picked up markedly. Along
with an increase in private consumption, growth was also driven by gross fixed capital
formation and housing construction. Foreign trade did not impair growth, but the neg-
ative impact resulting from a significant decline in government spending was notable.
GDP increased by 1.9 % (previous year: 2.8 %).
In the euro zone, economic output was down by 0.4 % in the reporting year
(previous year: –0.7 %). At the beginning of the year, economic output continued to
suffer from the sovereign debt crisis. The consolidation measures put into effect in
some countries slowed not only government spending but also private consumption,
which decreased by 0.6 % on average for the year as unemployment rates proved to
be exceptionally high. Gross fixed capital formation declined by 3.5 % and domestic
demand by 0.9 %. The moderate expansion in foreign trade acted to slow the decrease
in GDP by 0.5 percentage points. Nonetheless, the economy improved over the course
of the year. Growth rates began rising again in the second quarter, a development that
extended to nearly all of the countries in crisis as the year progressed.
Following a weak start, the German economy was rejuvenated over the course of
2013 with GDP increasing by 0.4 % (previous year: 0.7 %). Foreign trade proved to be a
detrimental factor. Demand from the euro zone was weak and exports to other regions
only moderate. Exports therefore grew by just 0.6 % (previous year: 3.2 %), whereas
growth in imports was more than twice that figure. Gross fixed capital formation d
eclined
by 0.8 % on average for the year (previous year: –2.1 %). Growth was boosted by private
consumption, which rose by 0.9 % (previous year: 0.8 %). The German labour market
remained largely stable. The average annual number of employed workers increased to
41.8 million (previous year: 41.6 million).
A.24 Brent Crude spot price and euro / US dollar exchange rate in 2013
140 1.55
1.50
120 1.45
1.40
100 1.35
1.30
80 1.25
1.20
60 1.15
1.10
40 1.05
January March June September December
Brent Crude spot price per barrel in US dollars Euro / US dollar exchange rate
At the start of 2013, the euro and US dollar exchange rates were still under the influ-
ence of the European sovereign debt crisis, which had widened to include Cyprus. This,
in conjunction with the weak euro zone economy, resulted in a drop in the euro to its
annual low of just under US$1.28 in March. Thanks to the gradually improving economy
in the euro zone, fears that the sovereign debt crisis might re-intensify abated over the
course of the year. The euro benefited from this with an increase of 4.2 % to over US$1.37
by the end of the year. Measured against the pound sterling, the euro posted a 2.4 % gain.
Europe
2,532
Latin America
237
North America
Exports 779
70 322 150 237
Imports 784
215 144 126 299
Latin America
Exports 1,189
101 550 239 299
Imports 464
51 99 77 237
Europe
Exports 919
332 384 126 77
Imports 1,256
556 311 150 239
Asia Pacific
Exports 790
236 311 144 99
Imports 2,619
1,363 384 322 550
Legal environment
In view of our leading market position, a large number of our services are subject
to sector-specific regulation under the Postgesetz (PostG – German Postal Act). Further
information on this issue and legal risk is contained in the Notes to the consolidated Note 53
financial statements.
Significant events
No significant events
There were no events with material effects on the Group’s net assets, financial pos
ition and results of operations in financial year 2013.
Results of operations
A.27 Selected indicators for results of operations
2012 2013
Revenue € m 55,512 55,085
Profit from operating activities (EBIT) € m 2,665 2,861
Return on sales 1 % 4.8 5.2
Consolidated net profit for the period 2 € m 1,640 2,091
Earnings per share 3 € 1.36 1.73
Dividend per share € 0.70 0.80 4
1
EBIT / revenue.
2
After deduction of non-controlling interests, prior-year amount adjusted.
3
Basic earnings per share, prior-year amount adjusted.
4
Proposal.
Currency effects cause 0.8 % decline in consolidated revenue A.28 Consolidated revenue
Consolidated revenue declined slightly by 0.8 % to €55,085 million in financial € m
year 2013 (previous year: €55,512 million). The proportion of consolidated revenue 2013
generated abroad declined from 69.7 % to 69.0 %, largely due to negative currency 55,085
effects of €1,738 million. Changes in the portfolio reduced revenue by €287 million. At 17,074 38,011
€14,494 million, revenue in the fourth quarter was down 0.6 % year-on-year (previous 2012
year: €14,577 million). The figure was negatively impacted by currency effects of 55,512
€607 million and changes in the portfolio. 16,825 38,687
Other operating income declined by €207 million to €1,961 million. In the previous Germany Abroad
year, provisions relating to the US express business that were no longer required had
been reversed.
€ m %
Revenue 55,085 – 0.8 • Growth trends in the German parcel and international
express businesses remain intact
• Currency effects reduce consolidated revenue
by €1,738 million
Other operating income 1,961 – 9.5 • Previous year also included income from the reversal
of provisions for the US express business
Materials expense 31,212 –2.0 • Declined due in particular to currency effects
Staff costs 17,785 0.1 • Increased number of staff, mostly in the SUPPLY CHAIN
division
• Higher labour costs in the MAIL division
• Currency effects reduce staff costs
Depreciation, amortisation 1,341 0.1 • On a par with the previous year
and impairment losses
Other operating expenses 3,847 – 4.8 • Previous year also included the additional VAT payment
A.31 Total dividend and dividend Dividend of €0.80 per share proposed
per no-par value share
Our finance strategy calls for a payout of 40 % to 60 % of net profits as dividends as
€ m
a general rule. At the Annual General Meeting on 27 May 2014, the Board of Manage-
1,087
967
ment and the Supervisory Board will therefore propose a dividend of €0.80 per share
903
836
786
846 846 for financial year 2013 (previous year: €0.70) to shareholders. The distribution ratio
725 725
based on the consolidated net profit for the period attributable to Deutsche Post AG
556 0.80
0.75
0.90
0.70 0.70
shareholders amounts to 46.2 %. The net dividend yield based on the year-end closing
0.70 0.65
0.50
0.60 0.60
price of our shares is 3.0 %. The dividend will be distributed on 28 May 2014 and is tax-
free for shareholders resident in Germany.
04 05 06 07 08 09 10 11 1213 1 EBIT after asset charge increases
Dividend per no-par value share (€) EAC improved from €1,331 million to €1,499 million in 2013, due primarily to the
1
Proposal. improved profitability in the MAIL and EXPRESS divisions. The asset charge rose mod-
erately by 2.1 %, which was predominantly attributable to increased capital expenditures
throughout the divisions.
In the reporting year, the net asset base saw a slight €106 million decline to
€15,330 million. The changes in working capital resulting from good working capital
management contributed to this decline. Although investments in IT systems, the pur-
chase of freight aircraft and replacement and expansion investments in warehouses,
sorting systems and the vehicle fleet increased year-on-year, they were unable to com-
pensate for the decrease in intangible assets as a result of amortisation and impairment
as well as exchange rate losses.
The decline in operating provisions is due to the utilisation of some of the provi-
sion for postage stamps, amongst other factors. In addition, the decrease in other non-
current assets and liabilities contributed to the decline in the net asset base.
Financial position
Financial management is a centralised function in the Group
The Group’s financial management activities include managing cash and liquidity;
hedging interest rate, currency and commodity price risk; ensuring Group financing;
issuing guarantees and letters of comfort and liaising with rating agencies. We steer
processes centrally, which allows us to work efficiently and successfully manage risk.
Responsibility for these activities rests with Corporate Finance at Group head
quarters in Bonn, which is supported by three Regional Treasury Centres in Bonn
(Germany), Weston (USA) and Singapore. These act as interfaces between headquarters
and the operating companies, advise the companies on all financial management issues
and ensure compliance with Group-wide requirements.
Corporate Finance’s main task is to minimise financial risk and the cost of capital,
whilst preserving the Group’s lasting financial stability and flexibility. In order to main-
tain its unrestricted access to the capital markets, the Group continues to aim for a credit
rating appropriate to the sector. We therefore monitor the ratio of our operating cash
flow to our adjusted debt particularly closely. Adjusted debt refers to the Group’s net
debt, allowing for unfunded pension obligations and liabilities under operating leases.
1
Weighted average cost of capital Group management, page 36.
Funds from operations (FFO) represents operating cash flow before changes in
working capital plus interest and dividends received less interest paid and adjusted for
operating leases, pensions and non-recurring income or expenses, as shown in the
following calculation. In addition to financial liabilities and surplus cash and near-
cash investments, the figure for debt also includes operating lease liabilities as well as
unfunded pension liabilities.
The “FFO to debt” dynamic performance metric rose significantly in the reporting
year compared with the prior year due to the improvement in funds from operations
and the decrease in debt.
Funds from operations increased by €451 million to a total of €4,425 million, pri-
marily due to the increase in operating cash flow before changes in working capital. The
prior-year figure had been negatively impacted by the one-time increase in the plan assets
of German pension plans (€1,986 million) and portions of the additional VAT payment
(€384 million). Since the related effects were non-recurring, they were recorded under
non-recurring income / expenses, which in the previous year also included o perating
restructuring payments (€140 million) and the interest effects of the additional VAT
payment (€161 million). In the reporting year, operating restructuring payments in the
amount of €73 million were recognized as non-recurring income / expenses.
Debt declined by €878 million year-on-year to €12,852 million in financial year
2013. The decrease was mainly attributable to the good operating business trend, which
led to a substantial rise in surplus cash and near-cash investments. The increase was also
the result of bonds totalling €1 billion that we issued in October 2013 to refinance a bond
which matured in January 2014. However, since reported financial liabilities also rose
in the same amount, the bond issues had a neutral impact on debt. More information
on the financial liabilities reported is contained in the Notes. Note 46
Moody’s Investors • Scale and global presence as the • Exposure to global macroeconomic
Service world’s largest logistics company. trends in the logistics businesses.
• Large and relatively robust mail • Structural decline of traditional
Long-term: Baa 1
business in Germany. postal services.
Short-term: P – 2
• Success in restoring profitability • Despite the improving trend, credit
Outlook: positive
of logistics activities whilst reducing metrics are at the low end of the
negative regulatory and e-substitution rating category.
effects on the MAIL division.
• Conservative financial policy and
sound liquidity profile of the Group.
The increase in financial liabilities is primarily the result of the two bonds that
we issued in October 2013 in the amount of €0.5 billion each. Further information on
recognised financial liabilities is contained in the Notes. Note 46
Operating leases remain an important source of funding for the Group. We mainly
use operating leases to finance real estate, although we also finance aircraft, vehicle fleets
and IT equipment.
A.40 Capex and depreciation, amortisation and impairment losses, full year
2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013
Capex (€m) 332 434 597 508 150 129 300 277 318 407 1,697 1,755
Depreciation, amortisation
and impairment losses (€m) 334 358 400 408 111 92 288 270 206 213 1,339 1,341
Ratio of capex to depre-
ciation, amortisation and
impairment losses 0.99 1.21 1.49 1.25 1.35 1.40 1.04 1.03 1.54 1.91 1.27 1.31
2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013
Capex (€m) 141 259 173 232 54 57 85 90 109 217 562 855
Depreciation, amortisation
and impairment losses (€m) 87 108 100 94 28 23 75 65 59 58 349 348
Ratio of capex to depre-
ciation, amortisation and
impairment losses 1.62 2.40 1.73 2.47 1.93 2.48 1.13 1.38 1.85 3.74 1.61 2.46
A.43 Operating cash flow by division, Operating cash flow firmly in positive territory
2013
Net cash from operating activities amounted to €2,994 million in 2013. By contrast,
€ m
a net cash outflow of €203 million was generated in the previous year. This €3,197 mil-
MAIL
940
lion improvement is primarily due to reductions in provisions. In the previous year, we
funded further pension obligations and covered the additional VAT payment. The figure
EXPRESS
was also pushed up by the improved EBIT and a lower figure for non-cash income and
1,471
expenses. At €3,078 million, net cash from operating activities before changes in work-
GLOBAL FORWARDING, FREIGHT
ing capital also increased sharply compared with the previous year’s figure (€219 mil-
649
lion). Thanks to better working capital management, the cash outflow from changes in
SUPPLY CHAIN
working capital declined from €422 million to €84 million. The change in liabilities and
637
other items made a particularly significant contribution to this development.
Sale of property, plant and equipment and intangible assets 225 177 76 59
Acquisition of property, plant and equipment and intangible assets –1,639 –1,389 – 542 – 460
Cash outflow arising from change in property, plant
and equipment and intangible assets –1,414 –1,212 – 466 – 401
Interest received 46 42 10 8
Interest paid –296 –166 –26 – 45
Net interest paid –250 –124 –16 –37
Net assets
A.46 Selected indicators for net assets
2012 2013
Equity ratio 1 % 27.3 28.3
Net debt € m 1,952 1,481
Net interest cover 10.7 23.1
FFO to debt 2 % 28.9 34.4
1
Prior-year amount adjusted.
2
Calculation Financial position, page 52.
MAIL
Revenue 13,972 14,452 3.4 3,851 3,968 3.0
of which Mail Communication 5,284 5,619 6.3 1,394 1,476 5.9
Dialogue Marketing 2,548 2,363 –7.3 691 654 – 5.4
Press Services 744 734 –1.3 189 194 2.6
Parcel Germany 3,477 3,750 7.9 1,038 1,112 7.1
Retail Outlets 850 883 3.9 229 240 4.8
Global Mail 1,712 1,783 4.1 496 480 –3.2
Pension Service 101 98 –3.0 23 22 – 4.3
Consolidation / Other –744 –778 – 4.6 –209 –210 – 0.5
Profit from operating activities (EBIT) 1,048 1,226 17.0 372 360 –3.2
Return on sales (%) 1 7.5 8.5 – 9.7 9.1 –
Operating cash flow –1,445 940 – –1,415 328 –
EXPRESS
Revenue 12,778 12,712 – 0.5 3,342 3,326 – 0.5
of which Europe 5,614 5,891 4.9 1,482 1,561 5.3
Americas 2,276 2,259 – 0.7 602 593 –1.5
Asia Pacific 4,301 4,289 – 0.3 1,121 1,118 – 0.3
MEA (Middle East and Africa) 961 924 –3.9 239 229 – 4.2
Consolidation / Other –374 – 651 –74.1 –102 –175 –71.6
Profit from operating activities (EBIT) 1,110 1,133 2.1 280 320 14.3
Return on sales (%) 1 8.7 8.9 – 8.4 9.6 –
Operating cash flow 1,102 1,471 33.5 495 588 18.8
SUPPLY CHAIN
Revenue 14,340 14,277 – 0.4 3,733 3,712 – 0.6
of which Supply Chain 13,000 12,939 – 0.5 3,391 3,343 –1.4
Williams Lea 1,345 1,345 0.0 345 371 7.5
Consolidation / Other –5 –7 – 40.0 –3 –2 33.3
Profit from operating activities (EBIT) 419 441 5.3 116 178 53.4
Return on sales (%) 1 2.9 3.1 – 3.1 4.8 –
Operating cash flow 432 637 47.5 275 376 36.7
1
EBIT / revenue.
MAIL DIVISION
Revenue up by 3.4 %
In the reporting year, revenue in the division was €14,452 million and therefore well
above the prior year’s figure of €13,972 million, despite 0.6 fewer working days. The figure
for the reporting year included negative currency effects of €26 million. Our operating
business performed well overall, especially in the Mail Communication, Parcel Germany
and Global Mail business units. In the first half of 2013, we utilised some of the provision
recognised for postage stamps, which resulted in a positive effect of €50 million.
EXPRESS DIVISION
Our industrial project business (in table 55, reported as part of Other) saw weaker
performance in the reporting year compared with the prior year. Discontinuing the
unprofitable part of our ship charter business in China in 2012 resulted in a drop in
revenue; however, this could be partially offset by the addition of new profitable business.
The share of revenue related to industrial project business and reported under Other
was 37.9 % and therefore almost on a par with the previous year (38.7 %). Gross profit
improved by a double-digit percentage compared with the prior year.
Excluding the effects mentioned above, revenue growth was 7.5 %. 20 % Consumer
25 % Retail
Asian supply chain business records highest revenue growth
Revenue in the Supply Chain business unit for 2013 was €12,939 million, a slight
0.5 % decline from the previous year (€13,000 million). Excluding business disposals
and high negative currency effects, growth was 6.0 %. The largest revenue increases were A.58 SUPPLY CHAIN:
revenue by region, 2013
seen in the Life Sciences & Healthcare, Automotive, Consumer and Technology sectors
Total revenue: €14,277 million
along with significant growth in Airline Business Solutions. Revenue from the top 20
14 % Asia Pacific /
customers increased by 5.4 %. Middle East/Africa 1
In the Americas region, revenues in the major sectors Consumer, Life
Sciences & Healthcare and Automotive improved due to additional volume and new 28 % Americas
business. The strongest revenue growth was seen in Brazil, principally in the Technology
sector.
The largest percentage revenue increase was achieved in the Asia Pacific region, 58 % Europe/Other /
primarily in Australia, China and Thailand. Revenue growth in Australia resulted from Consolidation 1
additional volumes and new business, above all in the Consumer, Life Sciences & Health- 1
At the beginning of 2013, the sub-region
care and Technology sectors, as well as from Airline Business Solutions. In China, rev Middle East and Africa was consolidated
into the Asia Pacific region.
enue increased significantly in the Consumer and Technology sectors, whilst in Thailand
we benefited from new business and higher volumes in the Automotive, Consumer and
Retail sectors.
In Europe, volumes in the Automotive sector and in Airline Business Solu-
tions increased on account of higher end-customer demand. Revenue in the Life
Sciences & Healthcare sector improved due to additional business with the UK National
Health Service. The economic environment adversely affected business in other parts
of Europe.
Revenue in the Williams Lea business unit was €1,345 million in the reporting year
(previous year: €1,345 million). Excluding negative currency effects, revenue increased
by 4.5 % with accelerated growth in the second half of the year. Additional activity and
the start of new contracts were partly offset by lower volumes in the banking and legal
sectors, as well as some contract losses.
Deutsche Post shares outperform the DAX for the third consecutive year
Deutsche Post shares again made strong gains over the course of 2013. Although
the shares recovered quickly from their annual low of €16.51 on 8 January, they then
proceeded to mirror the fluctuating market. After publication of the figures for 2012 on
5 March our shares broke away from the rest of the market to take a lead that widened
even more after the announcement of the quarterly figures on 14 May 2013. The free
float steadily increased up until the end of July, finally reaching 79.0 % as a result of full
conversion of a convertible bond issued by KfW Bankengruppe (KfW). Publication of
the results for the second quarter on 6 August led to fresh price gains for our shares
along with rising market capitalisation, a development that made no small contribution
to their admission to the EURO STOXX 50 on 23 September. Over the rest of the year we
registered additional gains thanks to increases in demand as well as another announce-
ment of solid figures on 12 November, this time for the third quarter. The subsequent
brief price correction was followed by a year-end rally to a new all-time high of €26.71
on 27 December. With a closing price of €26.50, our shares ended the year up 59.6 % and
thus outperformed the DAX for the third consecutive year. Deutsche Post shares were also
the second-strongest stock in Germany’s leading index as well as in the EURO STOXX 50
at the end of 2013. Average daily Xetra trading volumes remained at the prior-year level
at 4.1 million shares.
our stock as appropriately rated. As a result, the number of hold ratings increased from
11 to 14. Only three analysts recommended selling, one more than in the previous year. 79.0 % free float
The average price target increased from €17.44 to €26.13 during the year.
67.8 % institutional
investors
Free float rises anew 11.2 % private investors
The convertible bond issued by KfW on 23 July 2009 and exchangeable for 54.1 mil-
lion Deutsche Post shares was converted in full by the bond creditors prior to the end 1
As at 31 December 2013.
of July due to the strong performance of the stock. KfW’s stake thus dropped by 4.5 %
to 21.0 % in advance of the conversion deadline of 30 July 2014 with the according rise A.63 Shareholder structure by region 1
in the free float to 79.0 %. The share of our stock held by private investors rose to 11.2 %
13.8 % USA
(previous year: 10.8 %). In terms of the regional distribution of identified institutional
14.8 % UK
investors, the highest percentage of shares (14.8 %) continues to be held in the United
Kingdom (previous year: 13.8 %). The share of US investors increased to 13.8 % (previous 26.9 % Other
year: 12.3 %) whilst that of institutional investors in Germany rose to 12.3 % (previous
year: 11.7 %). Our 25 largest institutional investors hold a total of 30.5 % of all issued shares.
44.5 % Germany
Focused capital markets communication recognised
We again succeeded in demonstrating the potential of our company and its divisions 1
As at 31 December 2013.
to the capital markets in the reporting year. In April, we held two Capital Markets
Tutorial Workshops – one in London and one in Frankfurt am Main – to ensure a
high level of transparency with regard to pensions and other provisions, including their
impact on the financial statements and free cash flow. In further tutorial workshops in
Leipzig and London in September, we explained the business model of our EXPRESS
division to investors and analysts with the aim of boosting confidence in the division’s
financial objectives. Our discussions regarding the MAIL division focused on medium-
term profit expectations and growth prospects for the parcel business. With respect to
the GLOBAL FORWARDING, FREIGHT division, discussions revolved around implemen-
tation of our strategic NFE project, and those regarding the SUPPLY CHAIN division
involved the prospects for growth and profitability.
We have further developed our investor targeting activities, holding a total of 566
one-on-one meetings at national and international conferences and road shows, 104 of
which involved members of our Board of Management. Our investor relations work was
recognised in the annual survey conducted by the Institutional Investor trade journal,
with both our CEO and IR team winning first place respectively in the transport sector
in a poll of sell-side analysts. In the opinion of their buy-side counterparts, Dr Frank
Appel and Lawrence Rosen also ranked amongst the top board members in the sector.
Our investor relations site took first place in the IR Global Rankings out of 300
participating companies in the category of “IR Website”. Furthermore, we have also
been providing up-to-date IR and financial media news for the iPad since June 2013.
In the reporting year alone, our free “DPDHL IR app” has been downloaded more than
2,000 times.
NON-FINANCIAL FIGURES
Deutsche Post DHL not only wants to be an attractive investment for shareholders, it
also wants to become the employer of choice for employees and the provider of choice for
customers. Our services in the areas of HR, diversity, health management, occupational
safety, service and quality play a key role in this endeavour. With programmes in the areas of
environmental protection, disaster management and education, the Group is also committed
to social responsibility.
Employees
“One HR” – redesigning HR
With excellent HR work, we intend to contribute to the performance of the Group
and its divisions, whilst safeguarding the balance between Group-wide h armonisation
and divisional / regional independence. In 2012, we began to transform the content
and structure of our Human Resources activities with the launch of our One HR pro-
gramme. Our objective is to create a globally integrated HR management and, over the
course of the reporting year, important steps were taken towards this goal: corporate
and divisional structures were redesigned, a cross-divisional HR decision-making body
was established, and a globally applicable HR process framework created.
In future, Group-wide strategies and standards will be introduced across all areas of
HR. Furthermore, we intend to take strategic action to achieve success by way of ten key
initiatives, including talent management, diversity and leadership development training.
These changes within the HR organisation are being accompanied by a batch of
measures, including a network of promoters set up specifically to help facilitate the
changes and a new training programme designed for all HR employees within the Group.
At year-end
Headcount 1 473,626 480,006 1.3
Full-time equivalents 2 428,129 435,285 1.7
of which MAIL 145,850 148,083 1.5
EXPRESS 85,587 86,095 0.6
GLOBAL FORWARDING, FREIGHT 42,062 43,405 3.2
SUPPLY CHAIN 141,926 145,190 2.3
Corporate Center / Other 12,704 12,512 –1.5
of which Germany 167,082 168,925 1.1
Europe (excluding Germany) 107,322 105,012 –2.2
Americas 72,503 77,162 6.4
Asia Pacific 64,164 66,840 4.2
Other regions 17,058 17,346 1.7
The majority of employees were hired in the SUPPLY CHAIN division as a result of A.66 Employees by region, 2013 1
growth in new and existing business. The prior-year figure includes employees from 4 % Other
three companies that have since been divested. 15 % Asia Pacific
The MAIL division saw increases because new personnel were hired, in particular
18 % Americas
for the Parcel Germany business unit.
24 % Europe
The number of full-time employees in the EXPRESS division increased slightly com- (excluding Germany)
pared with the previous year. This was necessary mainly in the area of operations due
to the increase in item volumes.
39 % Germany
The GLOBAL FORWARDING, FREIGHT division reports a slight increase due merely
to a change in the recording of figures in the Americas. 1
As at 31 December; full-time equivalents.
We continue to employ most of our personnel in Germany, where our workforce
increased. Staff levels also rose in the Americas, Asia Pacific and Other regions. Our
workforce in Europe declined.
Current planning foresees another slight increase in the number of employees in
financial year 2014.
The systematic development and qualification of our workforce begins with an A.68 Apprenticeship schemes
Deutsche Post DHL, worldwide 1
apprenticeship. In the reporting year, we hired over 2,148 talented young individuals
for more than 20 apprenticeship schemes and 15 dual-study programmes, making 5.6 % Warehousing
logistics specialists
Deutsche Post DHL one of the largest companies providing opportunities for appren- 5.7 % Duale Hochschule
tices in Germany. We also use performance incentives to motivate our apprentices. The students
7.0 % Forwarding and
top 5 % are fostered in our Top-Azubi talent programme. They receive additional support logistics services
specialists
from a “mentor”, have access to special seminars and receive an employment guarantee. 30.9 % Other apprentice-
In 2013, around 1,371 young people were offered a full-time employment contract after ship schemes
50.8 % Courier, express
completing their apprenticeship. and postal services
specialists
2012 2013
Suggestions for improvements number 165,124 124,834
Accepted suggestions for improvements number 133,698 106,248
Rate of implementation % 81.0 85.1
19.6 % Women
Since the end of 2011, we have taken measures to sustainably increase the num-
ber of women in executive positions: we have made a commitment with regard to fill-
ing e xecutive positions, introduced a system of key figures and installed mentoring
programmes. Furthermore, we are supporting women’s networks and we have
made Group-wide diversity training focusing on gender available for executives. On 80.4 % Men
The average annual employment rate of people with a disability was 8.7 % at
Deutsche Post AG in 2013, again well above the national average in the German private
sector (4.0 % in 2011, source: Bundesagentur für Arbeit (German federal employment
agency)).
2012 3 2013 4
Number of workplace accidents 2 14,441 15,765
Accident rate (number of accidents per 1,000 employees per year) 80 86
Number of working days lost due to accidents (calendar days) 313,750 359,452
Working days lost per accident 21.7 22.8
Number of fatalities due to workplace accidents 1 2
1
Includes employees of Deutsche Post AG.
2
Accidents when at least one working day is lost, including accidents on the way to and from work.
3
Adjusted.
4
As at 2 January 2014. Subject to change if later reports received.
Corporate responsibility
Focusing on corporate responsibility
Part of our Group strategy is to exemplify our corporate responsibility. We achieve
this by combining profitability with sustainability. The importance this has for our busi-
ness activities is demonstrated in our Code of Conduct, which is guided by the p rinciples
of the U niversal Declaration of Human Rights, the United Nations (UN) Global Compact,
the International Labour Organisation (ILO) convention and the OECD guidelines for
multinational companies. We also take the various interests of our stakeholders into
account. In order to more accurately understand their needs, we asked our stakeholders
to participate in a survey for the first time in the year under review. The results were
systematically recorded in a Materiality Analysis and are presented in our 2013 Corporate dpdhl.com/en/responsibility
Responsibility Report.
Our approach to value creation is to ensure that our business activities benefit both
society and the environment whilst at the same time solidifying our market position.
We pursue this approach by means of our activities in the area of environmental and
climate protection as well as through our sustainable products and services. In addition,
we s ystematically and continuously track developments in areas such as labour, health,
safety, procurement and compliance to enable us to more quickly and comprehensively
identify opportunities and risks relevant to our business. Furthermore, the Corporate Page 88 ff.
Citizenship department comprises activities in the area of education and emergency
assistance for natural disasters as well as local environmental protection and aid projects
in which our employees get involved.
Slight rise in greenhouse gas emissions due to better utilisation A.75 CO2 e emissions, 2013
of our own aircraft capacity Total: around 5.6 million tonnes 1
We aim to reduce our dependency on fossil fuels, improve our CO2 efficiency 14 % Real estate
and lower costs. We have anchored these goals throughout the entire Group with our
22 % Road transport
GoGreen environmental protection programme. Our “green” products and services help
customers achieve their own environmental targets whilst concurrently opening up new
business opportunities to us. By the year 2020 we intend to improve the CO2 efficiency
of our own operations and those of our subcontractors by 30 % compared with 2007.
We quantify our greenhouse gas emissions based upon the principles of the GHG 64 % Air transport
Protocol Corporate Standard and the DIN EN 16258 standard. In our European air 1
Scopes 1 and 2.
freight business, this also includes the requirements of the European Union Emissions
Trading System (EU ETS). Pursuant to DIN EN 16258, all gases that are harmful to the
environment must be disclosed in the form of CO2 equivalents (CO2 e). In 2013, our
direct (Scope 1) and indirect (Scope 2) greenhouse gas emissions amounted to approx-
imately 5.6 million tonnes (previous year: 5.4 million tonnes of CO2 e). These emissions
were a result of the fuel consumption of our fleet and energy consumption in our build-
ings. Our emissions increased by 3.7 % due mainly to better utilisation of our own air-
craft (Scope 1) in meeting demand. This reflects the EXPRESS division’s above-average
performance. At the same time, we have avoided 0.5 million tonnes of CO2 e by using
electricity from renewable sources.
2012 2013
Consumption by fleet
Air transport (jet fuel) million kilograms 1,059.0 1,131.8
Road transport (petrol, biodiesel, diesel, bio-ethanol, LPG) million litres 472.3 476.8
Road transport (biogas, CNG) million kilograms 2.2 3.2
Energy for buildings and facilities (including electric vehicles) million kilowatt hours 3,127 3,394
The basis for calculating our CO2 emissions and the changes in our CO2 efficiency
dpdhl.com/en/responsibility as well as detailed consumption data are available in the Corporate Responsibility Report.
Procurement
Expenditure at prior-year level A.77 Procurement expenses, 2013
In the year under review, the Group centrally purchased goods and services with a Volume: €9.4 billion
total value of approximately €9.4 billion (previous year: €9.5 billion). 8 % Production systems
8 % Network supplies
Procurement helps the divisions to reduce expenditure and make cost-effective
10 % Air fleet
investments. It has supported the EXPRESS division in the area of aviation for years. In 10 % Real estate
the reporting year, a global tender was put out for divisional kerosene requirements. As 13 % Ground fleet
a result, costs were reduced by around €3.6 million. A further €4.5 million was saved 13 % Transport services
Procurement once again supported the MAIL division in the selection and order
24 % Services
placement process for sorting solutions. In order to expand capacities in the parcel net-
work, the equipment at 20 facilities was expanded or retrofitted. Moreover, we selected
suppliers with whom a number of technical solutions are being tested. Procurement
also supported the ADAC Postbus project team during contract negotiations. As a result, Objectives and strategies, page 33
the costs initially calculated were reduced.
Procurement helped the GLOBAL FORWARDING, FREIGHT division with its New Objectives and strategies, page 34
Forwarding Environment project, leading negotiations and providing support in imple-
menting the future IT system.
The Group put out a global tender for the acquisition of IT hardware, which allowed
us to both reduce prices and increase product quality. The supplier base was expanded
and the hardware standardised.
The financing and payment model Supplier Finance, which is in place in parts
of Europe, the United States, South Korea and the People’s Republic of China, was
deployed in the United Kingdom and Turkey in the reporting year. It allows the divisions
to improve their working capital and suppliers to benefit from favourable financing
c onditions.
Brands
A.78 Brands and business units
Brand
GLOBAL FORWARDING,
Division MAIL EXPRESS FREIGHT SUPPLY CHAIN
Brand area • Mail • Global Mail • Express • Global • Supply
Communication • Parcel Germany Forwarding Chain
• Dialogue • Freight
Marketing
• Press Services
• Philately
• Pension Service
Frequency of occurrence
in one million simulation steps (incidence density)
Bandwidth with 95 % probability
Planned EBIT Most common value in one million simulation steps (“mode”)
“Worse than expected” “Better than expected”
The most important steps in our opportunity and risk management process are:
1 Identify and assess: Opportunities and risks are defined as potential deviations from
projected earnings. Managers in all divisions and regions provide an estimate of
our opportunities and risks on a quarterly basis and document respective actions.
They use scenarios to assess best, expected and worst cases. Each identified risk is
assigned to one or more managers, who assess it, monitor it, specify possible pro-
cedures for going forwards and then file a report. The same applies to opportunities.
The results are compiled in a database.
2 Aggregate and report: The controlling units responsible collect the results, evaluate
them and review them for plausibility. If individual financial effects overlap, they
are noted in our database and taken into account when compiling them. After being
approved by the department head, all results are passed on to the next level in the
hierarchy. The last step is complete when Corporate Controlling reports to the
will be used to analyse and report on opportunities and risks. The reports created
by Corporate Controlling provide an additional regular source of information to
the Board of Management for the overall steering of the Group.
4 Operating measures: The measures to be used to take advantage of opportunities and
manage risks are determined within the individual organisational units. They use
cost-benefit analyses to assess whether risks can be avoided, mitigated or transferred
to third parties.
5 Control: For key opportunities and risks, early warning indicators have been defined
that are monitored constantly by those responsible. Corporate Internal Audit has
the task of ensuring that the Board of Management’s specifications are adhered to.
It also reviews the quality of the entire opportunity and risk management operation.
The control units regularly analyse all parts of the process as well as the reports from
Internal Audit and the independent auditors with the goal of identifying potential
for improvement and making adjustments where necessary.
level by those responsible locally (by a chief financial officer, for example) and at a
central level by Corporate Accounting and Reporting, Taxes and Corporate Finance at
the Corporate Center.
Over and above the aforementioned internal accounting control system and risk
management structures, Corporate Internal Audit is an essential component of the
Group’s controlling and monitoring system. Using risk-based auditing procedures,
Corporate Internal Audit regularly examines the processes related to financial report-
ing and reports its results to the Board of Management. Upstream and downstream
checks and analyses of the reported data are performed under chronological aspects.
If necessary, we call in outside experts, for instance in the case of pension provisions.
Finally, the Group’s standardised process for preparing financial statements using
a c entrally administered financial statements calendar guarantees a structured and
e fficient a ccounting process.
Opportunities
Opportunities arising from market trends and our market position
A variety of external factors offer us numerous opportunities, indeed we believe that
the global market will grow. Advancing globalisation means that the logistics industry
will continue to grow at least as fast or faster than the world economy as a whole. This is
especially true for Asia, where trade flows to other regions and in particular within the
continent will continue to increase. As the market leader, our DHL divisions can generate
above-average benefits from this. This also applies to regions such as South America and
the Middle East, which continue to see robust growth. We are similarly well positioned
in the emerging economies of Brazil, Russia, India, China and Mexico (BRIC+M) and
will take advantage of opportunities arising in these markets.
Whether and to what extent the logistics market will grow is dependent on a num-
ber of factors. The trend towards outsourcing business processes continues. As a result,
supply chains are becoming more complex and more international but are also more
prone to disruption. For this reason, customers want stable, integrated logistics solutions,
which is what we provide with our broad-based service portfolio. We continue to see
growth opportunities in this area, in particular in the SUPPLY CHAIN division and as a
result of closer co-operation between all our divisions.
The booming online marketplace represents another opportunity for us in that it is
Glossary, page 218 creating demand for transporting documents and goods. The B2C market is experiencing
double-digit growth, particularly due to the rapid rise in digital retail trade. This has
created high growth potential for the national and international parcel business, which
we intend to tap into by expanding our parcel network.
Our customers want to improve their carbon efficiency and be supplied with infor-
mation on their CO2 emissions. Such an increase in environmental awareness presents
new business potential: with our own mail, parcel and express products as well as air and
ocean freight transport, we not only lead our industry in the areas of energy-efficient
transport, transparent emissions reports and climate-neutral products, but we also offer
customer-specific solutions to reduce carbon emissions.
Financial opportunities
Being a global operator also opens up opportunities for Deutsche Post DHL. For the
specified period under review, these are mainly opportunities arising from fluctuating
exchange rates from scheduled or planned future foreign currency transactions.
Significant currency risks from planned transactions are quantified as a net posi-
tion over a rolling 24-month period. Highly correlated currencies are consolidated in
blocks. The identified risks are hedged up to an average of 50 % using derivatives over
a 24-month period. The most important planned net surpluses at the Group level are
in pound sterling, Japanese yen and Korean won, whilst the Czech crown is the only
currency with a considerable net deficit. By offsetting the net deficit in US dollars with
surpluses in other highly correlated currencies, the net risk in the “US dollar block” at the
Group level is nearly offset and thus not actively managed. The average hedging level for
the year 2014 was approximately 48 % as at the reporting date. A potential devaluation
of the euro presents an opportunity for the Group’s earnings position. Based on current
macroeconomic estimates, we consider this opportunity to be of low relevance. Further
information on the financial position and finance strategy of the Group as well as on
the management of financial risks is found in the report on the economic position and
in the Notes. Note 50
Risks
Risks arising from the political and regulatory environment
Risks associated with the general business environment primarily arise from the fact
that the Group provides some of its services in a regulated market. A large number of
postal services rendered by Deutsche Post AG and its subsidiaries are subject to sector-
Glossary, page 218 specific regulation by the Bundesnetzagentur (German federal network agency), pursuant
Glossary, page 218 to the Postgesetz (PostG – German Postal Act). The Bundesnetzagentur a pproves or
reviews prices, formulates the terms of downstream access and has special supervisory
powers to combat market abuse.
On 14 November 2013, the Bundesnetzagentur determined the conditions for regu-
lating mail prices requiring approval under the price-cap procedure from January 2014
to December 2018. According to the decision, the general rate of inflation less the pro-
ductivity growth rate stipulated by the regulatory authority (X-factor) in the amount of
0.2 % p.a. constitutes the key factor applicable to mail prices subject to approval. This
would necessitate price reductions if the inflation rate in the reference period is lower
than the productivity growth rate specified and permit price increases if the inflation
rate in the reference period is higher than the productivity growth rate specified. On
2 December 2013, the Bundesnetzagentur approved the higher prices to be charged in
2014 for the products regulated under the price-cap procedure; as a result, this no longer
represents a risk.
On 8 June 2013, the Bundesnetzagentur initiated market abuse proceedings against
Deutsche Post InHaus Services GmbH, citing discriminatory access conditions for sort-
ing and consolidation services following a complaint by one of the company’s competi-
tors. The party filing the complaint accused the company in particular of offering other
postal services providers better conditions for posting and collection than it itself had
been offered. Deutsche Post InHaus Services GmbH considers the accusations to be
unfounded. The case is still under consideration by the Bundesnetzagentur. Should that
agency determine – contrary to expectations – that market abuse has occurred, the
company would have to desist from the actions in question. Due to the ongoing abuse
proceedings, we are refraining from a risk assessment.
Deutsche Post and DHL are in competition with other providers. Such competition
can significantly impact our customer base as well as the levels of prices and margins
in our markets. In the mail and logistics business, the key factors for success are quality,
customer confidence and competitive prices. Thanks to our high quality along with
the cost savings we have generated in recent years, we believe that we shall be able to
withstand the competition and keep any negative effects at a low level.
Financial risks
As a global operator, Deutsche Post DHL is inevitably exposed to financial risks.
These are mainly risks arising from fluctuating exchange rates, interest rates and com-
modity prices. Using operational and financial measures, we try to reduce the volatility
of financial figures due to financial risk.
Risks with respect to currencies may result from scheduled or planned future
foreign currency transactions. Significant currency risks from planned transactions are
quantified as a net position over a rolling 24-month period. Highly correlated currencies
are consolidated in blocks. The identified risks are hedged up to an average of 50 %
using derivatives over a 24-month period. The most important planned net surpluses at
the Group level are in pound sterling, Japanese yen and Korean won, whilst the Czech
crown is the only currency with a considerable net deficit. By offsetting the net deficit
in US dollars with surpluses in other highly correlated currencies, the net risk in the
“US dollar block” at the Group level is nearly offset and thus not actively managed. The
average hedging level for the year 2014 was approximately 48 % as at the reporting date.
The significant risk to the Group’s earnings position would be a general appreciation
of the euro. At present, we consider the individual risks arising from developments
with regard to the respective currencies of low relevance and those in the currency risk
category overall of medium relevance.
The key control parameters for liquidity management are the centrally available
liquidity reserves, which should not fall below €2 billion. Deutsche Post DHL had
central liquidity reserves of €4.6 billion as at the reporting date, consisting of central
financial investments amounting to €2.6 billion plus a syndicated credit line of €2 billion.
Therefore, the Group’s liquidity is sound in the short and medium term. Moreover, the
Group enjoys open access to the capital market on account of its good ratings within the
industry, and is well positioned to secure long-term capital requirements. The Group’s
net debt amounted to only €1.5 billion at the end of 2013. Given our existing interest
rate hedging instruments, the share of variable interest rate liabilities in non-current
financial liabilities in the amount of €4.6 billion is approximately 36 %. At present, we
consider liquidity and interest rate risks to be of low relevance.
As a logistics group, Deutsche Post DHL’s significant commodity price risks result
from changes in fuel prices (kerosene, diesel and marine diesel). In the DHL divisions,
most of these risks were passed on to customers via operating measures (fuel surcharges).
We only have noteworthy hedging instruments for the purchase of diesel in the MAIL
division. At present, we consider commodity price risks to be of low relevance.
Further information on the financial position and finance strategy of the Group
as well as on the management of financial risks is found in the report on the economic
position and in the Notes. Note 50
Since 1 July 2010, as a result of the revision of the relevant tax exemption provisions,
the VAT exemption has only applied to those specific universal services in Germany
that are not subject to individually negotiated agreements or provided on special terms
(discounts etc.). Deutsche Post AG does not believe that the legislative amendment fully
complies with the applicable provisions of European Community law. Due to the legal
uncertainty resulting from the new legislation, Deutsche Post AG is endeavouring to
clarify certain key issues with the tax authorities. Although Deutsche Post AG is imple-
menting the required measures to a large extent, the differing legal opinions on the part
of Deutsche Post AG and the tax authorities will be judicially clarified.
In light of the announced legal proceedings, we have not undertaken a risk classi-
fication.
EXPECTED DEVELOPMENTS
Overall Board of Management assessment
of the future economic position
Our strong position as market leader in the German mail and parcel business and
in nearly all of our logistics activities is the best possible basis for further growth. The
Board of Management expects consolidated EBIT to reach between €2.9 billion and
€3.1 billion in financial year 2014 and world economic growth to be slightly above the
previous year at best. A similar development is expected for world trade. The MAIL
division is likely to contribute around €1.2 billion to consolidated EBIT. Compared with
the previous year, we expect an additional improvement in overall earnings to between
€2.1 billion and €2.3 billion in the DHL divisions. The Corporate Center / Other result
should be better than €–0.4 billion. We expect to see a further positive development in
EBIT after asset charge and operating cash flow, in line with the EBIT trend.
Forecast period
Outlook generally refers to 2014
The information contained in the report on expected developments generally refers
to financial year 2014. However, in some instances we have chosen to extend the scope.
Future organisation
Parts of parcel business outside Germany consolidated in mail business
Our domestic parcel business in Poland, the Czech Republic, Belgium and the
Netherlands was consolidated in the MAIL division, effective 1 January 2014. This busi-
ness was previously part of the EXPRESS and GLOBAL FORWARDING, FREIGHT divisions.
The Chinese export economy is expected to benefit from rising global demand. In
addition, the Chinese government has adopted a number of reforms aimed at accel-
erating growth. However, investments could be hurt by overcapacities. Forecasts for
GDP growth are therefore mixed (IMF: 7.5 %, OECD: 8.2 %; Global Insight: 8.0 %). In
Japan, export activity is expected to pick up significantly in 2014. A continued revival
in domestic demand is also anticipated. However, the pending substantial increase in
value added tax is likely to put the brakes on private consumption temporarily. For that
reason, GDP will presumably grow at the same rate as in the previous year (IMF: 1.7 %,
OECD: 1.5 %; Global Insight: 1.8 %).
The United States is likely to experience a significant improvement in the situation
on the labour market, which would benefit private consumption. The major drivers of
this development are again expected to be construction spending and corporate invest-
ment. Foreign trade is also expected to revive. GDP growth will presumably accelerate
noticeably overall (IMF: 2.8 %, OECD: 2.9 %; Global Insight: 2.5 %).
In the euro zone, the economy is forecast to continue its gradual recovery, with
the improvement in the economic climate benefiting exports. Private households are
expected to obtain relief from tax increases, which should act to drive private con-
sumption. Companies are also likely to increase their capital expenditure again. On the
whole, however, GDP growth is expected to be moderate (IMF: 1.0 %, ECB: 1.1 %; Global
Insight: 0.8 %).
Early indicators suggest that the upturn in Germany will continue. Exports are
increasing, and companies are upping their capital expenditure. This could lead to an
increase in investments in machinery and equipment as well as construction spending
along with a rise in the number of employed persons and a corresponding decrease in
the unemployment rate. This would lay the foundation for rising incomes and – assum-
ing the inflation rate remains very low – an increase in private consumption. GDP is
therefore likely to see significant growth (IMF: 1.6 %, Sachverständigenrat: 1.6 %; Global
Insight: 1.8 %).
Given a balanced ratio of supply to demand, the price of crude oil should remain
stable for the most part in 2014.
Our finance strategy calls for a payout of 40 % to 60 % of net profits as dividends as
a general rule. At the Annual General Meeting on 27 May 2014, we intend to propose
to the shareholders that a dividend per share of €0.80 be paid for financial year 2013
(previous year: €0.70).
This Annual Report contains forward-looking statements that relate to the business, financial performance and results of oper
ations of Deutsche Post AG. Forward-looking statements are not historical facts and may be identified by words such as “believes”,
“expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets” and similar expressions.
As these statements are based on current plans, estimates and projections, they are subject to risks and uncertainties that could
cause actual results to be materially different from the future development, performance or results expressly or implicitly assumed
in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which
apply only as at the date of this presentation. Deutsche Post AG does not intend or assume any obligation to update these
forward-looking statements to reflect events or circumstances after the date of this Annual Report.
Any internet sites referred to in the Group Management Report do not form part of the report.
b
107 – 132
b Corporate Governance
b CORPORATE GOVERNANCE
DEAR SHAREHOLDERS,
In the 2013 financial year, Deutsche Post DHL performed well in what continued to be a challenging
economic environment in its capacity as provider, investment and employer of choice in its market.
The Finance and Audit Committee met seven times. Its chairman, Hero Brahms, and Stefan Schulte
are financial experts as defined by sections 100 (5) and 107 (4) of the Aktiengesetz (AktG – German
Stock Corporation Act). At its meeting in February, the committee examined the annual and consoli-
dated financial statements for 2012 and recommended that these be approved by a plenary meeting of
the Supervisory Board. The auditors took part in this meeting and gave a detailed presentation on their
findings regarding the key audit priorities set by the committee for 2012, along with recommendations
arising from their findings. Following the AGM, the Finance and Audit Committee engaged the auditors
to perform an audit of the 2013 annual and consolidated financial statements and the interim financial
report for the first half of the year. The committee also defined the key audit priorities. In advance of their
publication, the reviewed quarterly financial reports and the interim financial report for the first half of
the year were discussed by the committee together with the Board of Management and the auditors. The
main risk factors for the Group were also discussed at the February meeting as planned.
At its meeting on 20 June 2013, the Finance and Audit Committee considered the planned acquisition
of companies and holdings aimed at optimising Deutsche Post AG’s investment portfolio. The committee
received ongoing updates about other acquisitions and disposals throughout the year. The committee’s
deliberations included the acquisition of optivo GmbH, a leading German provider of e-mail marketing
services. The results of internal audits were also discussed by the committee.
At its meeting on 13 September 2013, the Finance and Audit Committee received a detailed progress
report on compliance organisation and compliance management from the Chief Compliance Officer. The
main risk factors for the Group were also discussed further.
On 4 December 2013, the Finance and Audit Committee considered the Group’s investment strategy
for pension assets as well as equity transactions. It also examined the business plan for 2014 and approved
both the 2014 internal audit plan and the sale of property in Hamburg. The committee regularly discussed
the Group’s business development and the internal control and risk management system. The appropriate
ness of the Group’s accounting system was discussed with the auditors by the committee.
The Strategy Committee that was set up in December 2013 will meet for the first time in 2014.
The Nomination Committee met on one occasion in 2013 to consider nominations for the 2014 AGM.
The chairs of the committees reported on the committees’ deliberations in the subsequent plenary
meetings.
In 2013 there were no meetings of the Mediation Committee, formed pursuant to section 27 (3) of
the Mitbestimmungsgesetz (MitbestG – German Co-determination Act).
Company in compliance with all recommendations of the German Corporate Governance Code
In December 2013, the Board of Management and the Supervisory Board submitted an unquali-
fied Declaration of Conformity pursuant to section 161 of the AktG and published it on the company’s
website. The declarations from previous years can also be viewed on this website. In the 2013 financial
year, Deutsche Post AG complied with all the recommendations of the Government Commission on the
German Corporate Governance Code, as amended on 15 May 2012, and also intends to comply with the
recommendations of the code as amended on 13 May 2013. The Corporate Governance Report (page 117 ff.)
contains further information on corporate governance within the company and the remuneration report.
SUPERVISORY BOARD
B.01 Members of the Supervisory Board B.02 Committees of the Supervisory Board
Strategy Committee
(since 13 December 2013)
Prof. Dr Wulf von Schimmelmann (Chair)
Andrea Kocsis (Deputy Chair)
Rolf Bauermeister
Prof. Dr Henning Kagermann
Thomas Koczelnik
Dr Ulrich Schröder
BOARD OF MANAGEMENT
114
Corporate Governance Board of Management
115
Mandates Corporate Governance
MANDATES
B.03 Mandates held by the Board of Management
1
Group mandate.
In this Annual Corporate Governance Statement, the company presents the main com- dpdhl.com/en/investors
ponents of Deutsche Post DHL’s corporate governance structure. These include the
Declaration of Conformity from the Board of Management and the Supervisory Board,
significant corporate governance practices that exceed legal requirements, the working
methods of the Board of Management and the Supervisory Board, and the composition
and working methods of the executive and other committees, as well as the targets for
the composition of the Supervisory Board.
At Deutsche Post DHL, the Chief Compliance Officer is responsible for the com
pliance management system and reports directly to the Chief Financial Officer. The
Chief Compliance Officer is supported by the Global Compliance Office, which
establishes compliance management standards on a Group-wide basis and supports
the corresponding activities of the divisions. Each of the four operating divisions has
a Compliance Officer, who regularly presents a report to the Board of Management
member for the respective division. These reports are incorporated into the Chief
Compliance Officer’s reports to the Board of Management and to the Finance and Audit
Committee of the Supervisory Board.
One of the main functions of compliance management at Deutsche Post DHL
is to implement a systematic process which allows for the identification of potential
compliance risks, the evaluation of compliance matters relating to business partners,
co-ordinated reporting of any breaches of law or guidelines, the management of guide-
lines and the development and implementation of training and communication on
compliance. We made changes to our compliance hotline in 2013. It is available in
around 150 countries and assists employees in reporting breaches of law or the Code of
Conduct within the company; it also provides a structure for addressing and resolving
breaches. The insights gained from breaches that are reported are used to improve the
compliance management system on an ongoing basis. In addition, further steps were
taken to improve Group-wide communication on compliance matters, in order to re-
mind employees of their relevance and brief them specifically on the Code of Conduct.
election of Supervisory Board members shall be made in the interest of the enter-
prise only. Within this framework, the Supervisory Board aims to ensure that on
the entire Supervisory Board the share of independent members of the Supervisory
Board within the meaning of section 5.4.2 of the German Corporate Governance
Code shall be at least 75% and the share of female representation in the year 2015
shall be 30%.
2 The international activity of the enterprise is already adequately reflected in the
and efficient counselling and supervision of the Board of Management. The Super
visory Board decides in each case in accordance with the law and in due consider-
ation of the German Corporate Governance Code, how to deal with potential or
actual conflicts of interest.
4 In accordance with the age limit adopted by the Supervisory Board and laid down
in the Rules of Procedure for the Supervisory Board, proposals for the election of
Supervisory Board members shall consider the fact that the term of office shall end
no later than the close of the Annual General Meeting after the Supervisory Board
member reaches the age of 72.
The composition of the Supervisory Board remained unchanged during the report-
ing period and is in accordance with the above-mentioned targets. As a result of the
re-election of all employee representatives by the Delegate Assembly in April 2013 and
the re-election of Wulf von Schimmelmann by the AGM in May 2013, the composition
of the Supervisory Board did not change. The current composition of the Supervisory
Board exceeds the objective relating to the number of independent members. In respect
of the other objectives, the Supervisory Board was able to maintain the satisfactory
level which had already been achieved. There are six female members of the Super
visory Board, meaning that women currently make up 30 % of its members. The present
composition of the Supervisory Board adequately reflects the company’s international
operations. Numerous members possess special international knowledge and experience.
The AGM due to take place in May 2014 will duly elect or re-elect four shareholder
representatives to the Supervisory Board. The nominations put forward by the Super
visory Board to the AGM takes into account the fact that Hero Brahms, who has rendered
a significant contribution to the Supervisory Board over many years, both as a member
of the Presidium and as chair of the Finance and Audit Committee, will not be standing
for re-election due to the specified upper age limit. In putting forward its nominations,
the Supervisory Board has set itself the goal of increasing the proportion of women on
the Supervisory Board.
Remuneration report
The remuneration report also forms part of the Group Management Report.
Achievement of the upper targets for the financial year that have been agreed based
on demanding objectives is rewarded with the maximum annual bonus. If the targets
specified for the financial year are only partially reached or completely missed, the
annual bonus will be paid on a pro-rata basis or not at all. The Supervisory Board may
also elect to award an appropriate special bonus for extraordinary achievement.
The annual bonus is not paid in full in a single instalment on the basis of having
reached the agreed targets. Instead, 50 % of the annual bonus flows into a medium-term
component with a three-year calculation period (performance phase of one year, sus-
tainability phase of two years). This medium-term component will be paid out after
expiry of the sustainability phase subject to the condition that EAC, as an indicator of
sustainability, is reached during the sustainability phase. Otherwise, payment of the
medium-term component is forfeited without compensation. This demerit system puts
greater emphasis on sustainable company development in determining management
board remuneration and sets long-term incentives.
Stock appreciation rights (SAR s) are granted as a long-term remuneration com-
ponent based on the Long-Term Incentive Plan resolved by the Supervisory Board in
2006 (2006 LTIP).
Each SAR entitles the holder to receive a cash settlement equal to the difference
between the average closing price of Deutsche Post shares for the five trading days
preceding the exercise date and the exercise price of the SAR. In 2013, the members of
the Board of Management each made a personal financial investment consisting of 10 %
of their annual base salary. The waiting period for the stock appreciation rights is four
years from the date on which they were granted. After expiration of the waiting period,
and provided an absolute or relative performance target has been achieved, the SAR s
can be exercised wholly or partially for a period of two years. Any SAR s not exercised
during this two-year period will expire.
To determine how many, if any, of the SAR s granted can be exercised, the average
share price or the average index value for the reference period is compared with that of
the performance period. The reference period comprises the last 20 consecutive trading
days prior to the issue date. The performance period is the last 60 trading days before
the end of the waiting period. The average (closing) price is calculated as the average
closing price of Deutsche Post shares in Deutsche Börse AG’s Xetra trading system.
A maximum of four out of every six SAR s can be “earned” via the absolute perform
ance target and a maximum of two via the relative performance target. If neither an
absolute nor a relative performance target is met by the end of the waiting period, the
SAR s attributable to the related tranche will expire without replacement or c ompensation.
One SAR is earned each time the closing price of Deutsche Post shares exceeds the
issue price by at least 10 %, 15 %, 20 % or 25 %. The relative performance target is tied
to the performance of the shares in relation to the STOXX Europe 600 Index (SXXP,
ISIN EU0009658202). It is met if the share price equals the index performance or if it
outperforms the index by at least 10 %.
Remuneration from stock appreciation rights is limited to 300 % of the annual t arget
cash compensation (annual base salary plus the annual target bonus). Moreover, it may
be limited by the Supervisory Board in the event of extraordinary circumstances.
contract, the company may declare its waiver of adherence to the non-compete clause.
In such a case, the company will be released from the obligation to pay compensation
due to a restraint on competition six months after receipt of such declaration.
Apart from the aforementioned arrangements, no member of the Board of Manage-
ment has been promised any further benefits after leaving the company.
B.05 Remuneration paid to the Group Board of Management in 2013: cash components
€ Performance
Non-performance related related
Share of
annual bonus
Payout from transferred to
medium-term medium-term
Annual component component
Board members base salary Fringe benefits Annual bonus (2011) Total (2013) 1
Dr Frank Appel, Chairman 1,962,556 30,093 834,086 436,268 3,263,003 834,086
Ken Allen 930,000 97,403 453,375 208,708 1,689,486 453,375
Roger Crook 860,000 203,918 384,678 290,228 1,738,824 384,678
Bruce Edwards 930,000 124,884 446,493 421,317 1,922,694 446,493
Jürgen Gerdes 953,250 23,858 457,274 465,000 1,899,382 457,274
Lawrence Rosen 930,000 20,220 453,375 215,000 1,618,595 453,375
Angela Titzrath 715,000 61,234 303,875 – 1,080,109 303,875
1
This amount will be paid out in 2016 provided the sustainability indicator is fulfilled.
B.06 Remuneration paid to the Group Board of Management in 2013: share-based component
with long-term incentive effect
€ Value of SAR s
Number on grant date
Active board members of SAR s (1 Aug. 2013)
Dr Frank Appel, Chairman 533,304 1,962,559
Ken Allen 252,720 930,010
Roger Crook 233,700 860,016
Bruce Edwards 252,720 930,010
Jürgen Gerdes 265,356 976,510
Lawrence Rosen 252,720 930,010
Angela Titzrath 194,298 715,017
Remuneration paid to the Group Board of Management in the previous year (2012)
B.07 Remuneration paid to the Group Board of Management in 2012: cash components
€ Performance
Non-performance related related
Share of
Payment from annual bonus
medium-term transferred to
Annual component medium-term
Board members base salary Fringe benefits Annual bonus (2010) Total component 2
Dr Frank Appel, Chairman 1,841,411 34,763 1,244,325 415,493 3,535,992 519,194
Ken Allen 918,333 99,150 490,050 175,032 1,682,565 419,100
Roger Crook 823,750 195,571 407,756 – 1,427,077 407,756
Bruce Edwards 930,000 107,348 443,610 214,549 1,695,507 443,610
Jürgen Gerdes 930,000 21,008 448,725 340,000 1,739,733 448,725
Lawrence Rosen 1 883,333 19,305 579,150 215,000 1,696,788 295,350
Walter Scheurle
(until 30 April 2012) 310,000 6,707 230,175 223,380 770,262 76,725
Angela Titzrath
(since 1 May 2012) 476,667 42,227 3 235,950 – 754,844 235,950
1
In financial year 2012, an additional €209,000 was paid out as compensation for rights that lapsed as a result
of Mr Rosen’s transfer to Deutsche Post AG. The compensation payment is described in the 2009 Annual Report.
2
This amount will be paid out in 2015 provided the sustainability indicator is fulfilled.
3
In financial year 2012, an additional €538,835 was paid out as compensation for rights that lapsed as a result
of Ms Titzrath’s transfer to Deutsche Post AG, as described above.
B.08 Remuneration paid to the Group Board of Management in 2012: share-based component
with long-term incentive effect
€ Value of SAR s
Number on grant date
Active board members of SAR s (1 July 2012)
Dr Frank Appel, Chairman 544,068 1,817,187
Ken Allen 278,448 930,016
Roger Crook 257,490 860,017
Bruce Edwards 278,448 930,016
Jürgen Gerdes 278,448 930,016
Lawrence Rosen 257,490 860,017
Angela Titzrath (since 1 May 2012) 214,074 715,007
Pensionable income consists of the annual base salary (fixed annual remuneration)
computed on the basis of the average salary over the last twelve calendar months of
employment. Members of the Board of Management attain a pension level of 25 % after
five years of service. The maximum pension level of 50 % is attained after ten years of
service. Subsequent pension benefits increase or decrease to reflect changes in the con-
sumer price index in Germany.
B.09 Pension commitments under the previous system in financial year 2013: individual breakdown
Pension commitments
B.10 Pension commitments under the previous system in the previous year (2012): individual breakdown
Pension commitments
B.11 Board of Management pension commitments under the new system in financial year 2013:
individual breakdown
€ Total Present value
contribution (DBO) as at Service cost for pension
for 2013 31 Dec. 2013 obligation, financial year 2013
Ken Allen 325,500 1,397,841 318,826
Roger Crook 301,000 783,308 298,666
Bruce Edwards 325,500 1,852,506 327,236
Lawrence Rosen 325,500 2,396,295 321,414
Angela Titzrath 250,250 461,924 239,711
Total 1,527,750 6,891,874 1,505,853
B.12 Board of Management pension commitments under the new system in the previous year (2012):
individual breakdown
€ Total Present value
contribution (DBO) as at Service cost for pension
for 2012 31 Dec. 2012 obligation, financial year 2012
Ken Allen 301,000 1,027,195 297,574
Roger Crook 250,250 454,642 244,487
Bruce Edwards 325,500 1,482,117 329,531
Lawrence Rosen 301,000 1,977,370 300,978
Angela Titzrath (since 1 May 2012) 526,833 1 198,981 –
Total 1,704,583 5,140,305 1,172,570
1
Pro-rated contribution for eight months, plus a starting balance of €360,000. The starting balance will not
be credited if Ms Titzrath leaves the company of her own volition prior to reaching the age of 60 or works
for the company after reaching the age of 60.
The variable remuneration for financial year 2011 falls due for payment as at the end
of the 2014 AGM if the consolidated net profit per share for financial year 2013 exceeds
the consolidated net profit per share for financial year 2010. Since this condition was
not met, no performance-related remuneration with a long-term incentive effect will
be paid out for financial year 2011.
The remuneration for the previous year (2012), consisting of a fixed component
and the attendance allowance, is shown in the following table for each Supervisory
Board member:
In addition, the variable remuneration for financial year 2010 was paid out in the
previous year (2012) in the amount of €465,000, of which €41,875 was to Board mem-
bers who have now left the company and €423,125 to active Board members. The follow-
ing table shows the remuneration paid to each Supervisory Board member:
c
133 – 214
ASSETS
Intangible assets 24 12,196 12,151 11,836
Property, plant and equipment 25 6,493 6,663 6,814
Investment property 26 40 43 33
Investments in associates 27 44 46 48
Non-current financial assets 28 729 1,039 1,124
Other non-current assets 29 280 298 184
Deferred tax assets 30 1,206 1,328 1,327
Interest received 46 42
Dividend received 0 14
Current financial assets –10 – 575
Net cash used in investing activities 49.2 –1,697 –1,772
Balance at 1 January 2012, adjusted 1,209 2,170 5 90 –34 – 517 6,366 9,289 189 9,478
FINANCIAL STATEMENTS OF statements for the period ended 31 December 2013 include all Ger-
man and foreign companies in which Deutsche Post AG directly
In January 2013, Deutsche Post DHL acquired 49 % of the Insignificant acquisitions, 2013
shares of Compador Technologies GmbH, Berlin, which special- € m Carrying
ises in the development and manufacture of sorting machines and 1 January to 31 December amount Adjustment Fair value
software solutions covering the entire range of mail items pro-
ASSETS
cessed by mail service providers and companies. The company is Non-current assets 2 – 2
consolidated because of existing potential voting rights. Current assets 8 – 8
In addition, optivo GmbH, Berlin, was acquired in June 2013. Cash and cash equivalents 2 – 2
optivo provides technical e-mail marketing services in German- 12 – 12
speaking countries. The software and services offered by the com-
EQUITY AND LIABILITIES
pany make it possible to reach out to existing customers by auto- Current liabilities and provisions 7 – 7
matically sending campaign e-mails. 7 – 7
At the end of July 2013, all of the shares of RISER ID Net assets 5
Services GmbH, Berlin, were acquired via a subsidiary in which
Deutsche Post DHL holds a 51 % interest. The company is a ser-
vice provider offering electronic address information from public The calculation of goodwill is presented in the following table:
resident registers.
In financial year 2012, Deutsche Post DHL increased its Goodwill, 2013
previous 33 % stake in All you need GmbH, Berlin, a mobile com- € m
merce supermarket, to 82 %. The step acquisition of the company Fair value
was c arried out with a view to resale, since Deutsche Post DHL Contractual consideration 37
intended to focus on taking over and enhancing the logistics infra- Fair value of existing equity interest 2
structure. The company was therefore classified under assets held Cost 39
Less net assets 5
for sale and liabilities associated with assets held for sale in accord-
Less cost attributable to non-controlling interests 5
ance with IFRS 5. In the third quarter of 2013, the Board of Manage
Difference 29
ment announced that it no longer intended to resell the company.
Plus non-controlling interests 1 2
Initial consolidation resulted in goodwill of €5 million. The com-
Goodwill 31
pany was accounted for in the third quarter of 2013. The income 1
Non-controlling interests are recognised at their carrying amount.
statement presentation was not adjusted retrospectively due to the
immateriality of the amounts involved. Deutsche Post DHL’s stake
was further increased to 99.03 % (as at 31 December 2013) through Since their consolidation, the companies have contributed
disproportionate capital increases during financial years 2012 and €8 million to consolidated revenue and €–2 million to consoli-
2013. The additional shares acquired through the disproportion- dated EBIT. If the companies had already been acquired as at 1 Jan-
ate capital increases of €13 million led to a €1 million decline in uary 2013, they would have contributed an additional €9 million to
retained earnings. consolidated revenue and €1 million to consolidated EBIT.
Transaction costs amounted to less than €1 million and are
reported in other operating expenses.
€34 million has so far been paid for the companies acquired
in financial year 2013 and €5 million was paid for companies
acquired in previous years. The purchase price for the companies
acquired was paid by transferring cash funds.
Contingent consideration
Variable purchase prices, which are presented in the follow-
ing table, were agreed for the acquisitions in financial year 2013
and previous financial years:
Contingent consideration
Remaining Remaining
Period for financial years Fair value payment obligation payment obligation
Basis from / to Results range from of total obligation at 31 Dec. 2012 at 31 Dec. 2013
Revenue and gross income 1 2011 to 2013 €0 to €2 million €1 million €1 million €0 million
EBITDA 2011 to 2012 unlimited €1 million €1 million €0 million
Revenue and EBITDA 2 2011 to 2013 €0 to €3 million €1 million €2 million €1 million
Revenue and sales margin 2012 to 2014 €0 to €9 million €3 million €4 million €1 million
1
Both the range and the fair value changed due to amended agreements and earnings forecasts.
2
Change in the fair value of the total and remaining payment obligation due to differences between actual and estimated amounts.
Acquisitions in 2012 Exel Saudia LLC, a joint venture that was previously propor-
tionately consolidated and in which Deutsche Post DHL c ontinues
Date of
to hold 50 % of the shares, was fully consolidated because the
Name Country Segment Interest (%) acquisition terms of the contract were amended. The change in consolidation
Tag Belgium SA, method resulted in goodwill of €6 million from the disposal of the
Brussels (formerly 1 February
previous interest. The transaction resulted in a gain of €11 million,
Dentsu Brussels SA) Belgium SUPPLY CHAIN 100 2012
intelliAd Media
which is reported in other operating income.
GmbH, Munich Germany MAIL 100 9 July 2012 Deutsche Post DHL acquired 50 % of the shares of Luftfracht-
2 Sisters Food sicherheit-Service GmbH. The company is fully consolidated due
Group (2SFG),
to the terms of the contract.
Heathrow UK SUPPLY CHAIN Asset deal 27 July 2012
All you need GmbH, 24 October
Berlin Germany MAIL 82 2012 1, 2 Insignificant acquisitions, 2012
Terms of € m Carrying
Exel Saudia LLC, the contract 16 October
1 January to 31 December amount Adjustment Fair value
Al Khobar Saudi Arabia SUPPLY CHAIN amended 2012 2
Luftfrachtsicher- GLOBAL ASSETS
heit-Service GmbH, FORWARDING, 27 August Non-current assets 6 – 6
Frankfurt am Main Germany FREIGHT 50 2012
Current assets 22 – 22
1
Acquired in 2012 with a view to resale (IFRS 5) Note 37.
Cash and cash equivalents 5 – 5
For the current presentation in 2013 Note 2, acquisitions in 2013.
2
Step acquisition. Assets held for sale 6 6
39 – 39
The calculation of goodwill is presented in the following table: SUPPLY CHAIN segment
Deutsche Post DHL completed the sale of the fashion logis-
Goodwill, 2012 tics business of DHL Fashion (France) SAS, France, in April 2013.
€ m The assets and liabilities of the business concerned were reclassified
Fair value as held for sale in financial year 2012 in accordance with IFRS 5.
Contractual consideration 30 The most recent measurement of the assets prior to their reclassifi-
Fair value of the existing equity interest 1 25 cation resulted in an impairment loss of €1 million in 2012, which
Total cost 55 was reported in depreciation, amortisation and impairment losses.
Less net assets 24 In addition, ITG GmbH Internationale Spedition und Logis-
Difference 31
tik, Germany, was sold together with its subsidiaries in June 2013.
Less goodwill in accordance with IFRS 5 0
The companies’ assets and liabilities were reclassified as held for
Plus negative goodwill 2
sale in the first quarter of 2013 in accordance with IFRS 5. The most
Plus non-controlling interests 2 6
recent measurement of the assets prior to their reclassification did
Less goodwill arising from the change in consolidation method 6
Goodwill 33
not indicate any impairment.
1
Gain from the change in the method of consolidation is recognised under other operating
The sale of US company Exel Direct Inc. including its Can
income. adian branch was completed in May 2013. The company’s assets
2
Non-controlling interests are recognised at their carrying amount.
and liabilities had been reclassified as held for sale in the first quar-
ter of 2013 in accordance with IFRS 5. The most recent measure-
Purchase price allocation for Tag Belgium SA and Luftfracht- ment of the assets prior to their reclassification did not indicate
sicherheit-Service GmbH resulted in negative goodwill of €2 mil- any impairment.
lion, which is reported in other operating income. The negative US warehousing specialist Llano Logistics Inc. was sold and
goodwill is attributable to the coverage of potential business risks. deconsolidated in May 2013. Since all of the amounts involved
The companies have contributed €16 million to consolidated were lower than €1 million, they are not shown in the table below.
revenue and €0 million to consolidated EBIT since the date of
initial consolidation (amounts for 2012). If these companies had EXPRESS segment
been purchased at 1 January 2012, they would have added €25 mil- The sale of the Romanian domestic express business of
lion to consolidated revenue and €2 million to consolidated EBIT. Cargus International S. R. L. was completed in the first quarter of
The transaction costs for the insignificant acquisitions 2013. As at 31 December 2012, the assets and liabilities of the busi-
amounted to less than €1 million and are reported in other oper- ness concerned were reclassified as held for sale in accordance with
ating expenses. IFRS 5. The most recent measurement of the assets prior to their
€24 million was paid for the companies acquired in financial reclassification did not indicate any impairment.
year 2012. €38 million was paid for companies acquired in previous The sale of the Domestic Same Day business of DHL Express
years. The purchase price for the companies acquired was paid by UK Limited, UK, closed at the end of October 2013. The relevant
transferring cash funds. assets and liabilities had previously been reclassified as held for sale
in accordance with IFRS 5. The most recent measurement of the
Disposal and deconsolidation effects in 2013 assets and liabilities prior to their reclassification did not indicate
Gains are shown under other operating income; losses are any impairment.
reported under other operating expenses.
Gains are shown under other operating income; losses are Additional information on the size of the shareholdings can
reported under other operating expenses. be found in the list of shareholdings, which can be accessed on the
website, www.dpdhl.com/en/investors.html.
Joint ventures
The following table provides information about the balance 3 Significant transactions
sheet and income statement items attributable to joint ventures:
Issuance of bonds
At 31 December Deutsche Post DHL took advantage of favourable market
€ m conditions to place two conventional bonds amounting to €1 bil-
2012 1 2013 1 lion with national and international investors. The issue date was
9 October 2013. The capital raised will be used to repay a ten-year
BALANCE SHEET
Intangible assets 0 0
bond maturing in January 2014. The first issue in the amount of
Property, plant and equipment 14 13 €500 million has a maturity of five years and an annual coupon of
Receivables and other assets 68 77 1.5 %. The second €500 million issue has a maturity of ten years and
Cash and cash equivalents 9 8 an annual coupon of 2.75 %; Note 46.
Trade payables, other liabilities 40 38 At the end of September 2013, the five-year credit facility
Provisions 32 44 with a total volume of €2 billion taken out with a consortium of
Financial liabilities 2 2 national and international banks in 2010 was renewed early until
INCOME STATEMENT 2018 at more favourable terms. In addition, two one-year extension
Revenue 2 120 118 options were also agreed.
Profit from operating activities (EBIT) 9 8
1
Proportionate single-entity financial statement data. Income from changes to retirement plans
2
Revenue excluding intra-group revenue.
The defined benefit retirement plans in the UK were changed
to defined contribution plans in the fourth quarter of 2013. This
The consolidated joint ventures are AeroLogic GmbH, generated income of €55 million, which is recognised in staff costs.
Germany, EV Logistics, Canada, Bahwan Exel LLC, Oman, and Further details can be found in Note 44.
Danzas DV LCC, Russia.
ASSETS
Other non-current assets 2 570 –290 280 633 –335 298
Deferred tax assets 2 1,153 53 1,206 1,257 71 1,328
Receivables and other current assets 1 9,089 – 9,089 0 9,112 – 9,112 0
Trade receivables 1 – 6,934 6,934 – 6,959 6,959
Other current assets 1 – 2,155 2,155 – 2,153 2,153
Effective for
financial years
beginning
on or after Subject matter and significance
Amendments to IAS 1 1 January 2013 Entities must classify items presented in other comprehensive income by whether they will not or may be s ubsequently
(Presentation of Financial reclassified to profit or loss (recycled). The presentation has been adjusted; statement of comprehensive income.
Statements: Presentation There were no other effects.
of Items of Other Comprehen-
sive Income)
Amendments to IAS 19 1 January 2013 These amendments significantly affect the recognition and measurement of the cost of defined benefit retirement plans
(Employee Benefits) and termination benefits. The corresponding effects on the balance sheet as well as certain changes to the disclosure
requirements must also be reflected. With regard to defined benefit plans, the immediate recognition of actuarial gains and
losses in other comprehensive income (retained earnings), and the use of a uniform discount rate for provisions for pensions
and similar obligations, are of particular significance. The more detailed requirements on the recognition of administration
costs are also relevant. Furthermore, the classification of partial retirement obligations has changed. For more details on the
adjustments, Note 4.
Pro forma disclosures: If the amendments had not been applied in financial year 2013, EBIT would have decreased by
around €115 million and net other finance costs would have improved by €50 million. Provisions for pensions and similar
obligations would have seen a decrease of around €2,740 million, concurrent with the immediate rise in retained earnings
of around €3,150 million, whilst pension assets and the provisions for obligations from partial retirement arrangements
would have risen by around €320 million and around €10 million, respectively. Applying the tax rate for the current financial
year, income taxes would have declined by around €9 million. Basic earnings per share would have been around €1.68 and
diluted earnings per share around €1.62.
Amendments to IAS 12 1 January 2013 The amendment introduces a mandatory rebuttable presumption in respect of the treatment of temporary taxable
(Income Taxes: Deferred differences for investment property for which the fair value model is applied in accordance with IAS 40. The change had
Tax – Recovery of Under no effect on the consolidated financial statements.
lying Assets)
Amendments to IFRS 7 1 January 2013 The amendment to IAS 32 relating to the presentation of the offsetting of financial assets and liabilities and the associated
(Financial Instruments: additions to IFRS 7 require comprehensive disclosure of the rights of set-off, especially for those rights that do not result
Disclosures – Offsetting in offsetting under IFRS s. The change has led to additional disclosures in the Notes; Note 50.
Financial Assets and
Financial Liabilities)
IFRS 13 (Fair Value 1 January 2013 This sets out uniform, overarching requirements for the measurement of fair value. It requires a specific presentation
Measurement) of the techniques used to determine fair value. The application of the new standard results in additional disclosure
requirements; Notes 26, 37 and 50.
Annual Improvements 1 January 2013 The Annual Improvements to IFRS s 2009 – 2011 Cycle were adopted by the EU in March 2013. The annual improvement
to IFRS s 2009 – 2011 Cycle process refers to the following standards: IFRS 1 (First-Time Adoption of International Financial Reporting Standards),
IAS 1 (Presentation of Financial Statements), IAS 16 (Property, Plant and Equipment), IAS 32 (Financial I nstruments:
Presentation) and IAS 34 (Interim Financial Reporting). The amendments do not affect the presentation of the financial
statements.
The following are not relevant for the consolidated financial statements:
Amendments to IFRS 1 (Severe Hyperinflation and Removal of Fixed Dates for First-Time Adopters),
IFRIC 20 (Stripping Costs in the Production Phase of a Surface Mine),
Amendments to IFRS 1 (First-Time Adoption of International Financial Reporting Standards: Government Loans).
Effective for
financial years
Standard beginning
(Issue date) on or after Subject matter and significance
Amendments to IAS 32 1 January 2014 These provide clarification on the conditions for offsetting financial assets and liabilities in the balance sheet. A right
(Financial Instruments: of set-off must be legally enforceable for all counterparties, both in the normal course of business and also in the event
Presentation – Offset- of insolvency, and it must exist at the balance sheet date. The Standard specifies which gross settlement systems can
ting Financial Assets be regarded as net settlement for this purpose. The amendment will not have any significant effect on the presentation
and Financial Liabilities) of the financial statements. In individual cases, additional disclosures may be required.
(16 December 2011)
IFRS 10 (Consolidated 1 January 2014 1 This introduces a uniform definition of control for all entities that are to be included in the consolidated financial statements.
Financial Statements) The standard also contains comprehensive requirements on determining a relationship where control exists. IFRS 10 super-
(12 May 2011) sedes IAS 27 (Consolidated and Separate Financial Statements) as well as SIC-12 (Consolidation – Special Purpose Entities).
Special purpose entities previously consolidated in accordance with SIC-12 are now subject to IFRS 10. The reclassification
resulting from the change in the consolidation method when IFRS 10 enters into force in financial year 2014 will result in
changes which will, however, have no significance for the financial statements.
Pro forma disclosure: If the standard had already been applied in financial year 2013, revenue would have declined by
around €63 million and EBIT by €1 million. Consolidated net profit for the period would have decreased by €1 million.
IFRS 11 (Joint Arrangements) 1 January 2014 1 IFRS 11 supersedes IAS 31 (Interests in Joint Ventures). The option to proportionately consolidate joint ventures will be
(12 May 2011) abolished. However, IFRS 11 will not require all entities that are currently subject to proportionate consolidation to be
accounted for using the equity method in the future. IFRS 11 provides a uniform definition of the term “joint arrangements”
and distinguishes between joint operations and joint ventures. The interest in a joint operation is recognised on the basis
of direct rights and obligations, whereas the interest in the profit or loss of a joint venture must be accounted for using
the equity method. The mandatory application of the equity method to joint ventures will in future follow the require-
ments of the revised IAS 28 (Investments in Associates and Ventures). In future, due to the aforementioned requirements,
AeroLogic GmbH, Germany, and EV Logistics, Canada, may no longer be accounted for using the equity method, but will
be classified as joint operations and consolidated on a proportionate basis in accordance with the contractual provisions.
The entry into force of IFRS 11 in financial year 2014 will thus result in changes in the consolidated financial statements
which will, however, have no significant influence.
Pro forma disclosure: If the standard had already been applied in financial year 2013, revenue would have declined by around
€103 million, the change in EBIT would have been less than €1 million, net finance costs would have decreased by €1 million
and income taxes would have risen by €1 million. There would have been no change to consolidated net profit for the period.
IFRS 12 (Disclosures of 1 January 2014 1 This combines the disclosure requirements for all interests in subsidiaries, joint ventures, associates and unconsolidated
Interests in Other Entities) structured entities into a single standard. An entity is required to provide quantitative and qualitative disclosures about
(12 May 2011) the types of risks and financial effects associated with the entity’s interests in other entities. IFRS 12 results in increased
disclosure requirements.
Amendments to IFRS 10, 1 January 2014 1 The amendments relate to the transitional provisions in respect of the first-time application of the standards. They must
IFRS 11, IFRS 12: Transitional be applied in line with the effective dates for IFRS 10, IFRS 11 and IFRS 12.
Provisions
(28 June 2012)
IAS 27 (Separate Financial 1 January 2014 1 The existing standard IAS 27 (Consolidated and Separate Financial Statements) was revised in conjunction with the new
Statements) (revised 2011) standards IFRS 10, IFRS 11 and IFRS 12 and renamed IAS 27 (Separate Financial Statements) (revised 2011). The revised standard
(12 May 2011) now only contains requirements applicable to separate financial statements. The amendment will not affect the financial
statements.
IAS 28 (Investments in 1 January 2014 1 The existing standard IAS 28 (Investments in Associates) was revised in conjunction with the new standards IFRS 10, IFRS 11
Associates and Joint and IFRS 12 and renamed IAS 28 (Investments in Associates and Joint Ventures) (revised 2011). Its scope is being extended
Ventures) (revised 2011) to include accounting for joint ventures using the equity method. The previous requirements of SIC-13 (Jointly Controlled
(12 May 2011) Entities – Non-Monetary Contributions by Venturers) are being incorporated into IAS 28. The change will have no significant
influence on the financial statements.
Amendments to IAS 36 1 January 2014 These amendments clarify that disclosures regarding the recoverable amount of non-financial assets determined based
(Impairment of Assets – on fair value less costs of disposal are only required if an impairment loss has been recognised or reversed in the current
Recoverable Amount reporting period. In addition, the disclosures required when the recoverable amount is determined based on fair value
Disclosures for Non- less costs of disposal have been amended. The amendments are retrospectively applicable for financial years starting on
financial Assets) or after 1 January 2014; early application is permitted as IFRS 13 is already being applied. The Standard was applied early.
(29 May 2013)
The following are not relevant for the consolidated financial statements:
Amendments to IFRS 10, IFRS 12 and IAS 27 (Investment Entities) issued on 31 October 2012, effective for financial years beginning on or after 1 January 2014.
1
These standards were adopted into European law with a different effective date than the original standards.
Effective for
financial years
Standard beginning
(Issue date) on or after Subject matter and significance
Amendments to IAS 39 1 January 2014 Under this amendment, subject to certain conditions, novation of a hedging instrument to a central counterparty as a
(Novation of Derivatives consequence of laws or regulations does not give rise to termination of a hedging relationship. The amendments are
and Continuation of retrospectively applicable for financial years starting on or after 1 January 2014; early application is permitted. The Group
Hedge Accounting) does not currently consider that these amendments will have a significant effect on the p resentation of the financial
(27 June 2013) statements.
The following are not relevant for the consolidated financial statements:
Amendments to IFRS 10, IFRS 12 and IAS 27 (Investment Entities) issued on 31 October 2012, effective for financial years beginning on or after 1 January 2014.
1
These standards were adopted into European law with a different effective date than the original standards.
Effective for
financial years
Standard beginning
(Issue date) on or after Subject matter and significance
IFRS 9 (Financial Instruments) 1 January 2018 IFRS 9 was published in 2009 as part of the project to replace IAS 39 (Financial Instruments: Recognition and Measurement).
(12 November 2009), amend- The new Standard changes the previous requirements applicable for the classification and measurement of financial assets.
ments to IFRS 9 and IFRS 7 In 2010, the Standard was extended to include the classification and measurement of financial liabilities. The amendments
(Mandatory Effective Date to IFRS 9 and IFRS 7 published in December 2011 deferred the mandatory effective date to 1 January 2015. The transition
and Transition Disclosures) requirements were also specified in further detail. The disclosure requirements under IFRS 9 were added as an amendment
(16 December 2011), amend- to IFRS 7. The additional disclosure requirements should make it possible to assess the effect of initial application of IFRS 9
ments to IFRS 9, IFRS 7 and on the recognition and measurement of financial instruments. In November 2013, the IASB issued a new version of the
IAS 39 (Hedge Accounting) standard on hedge accounting as part of the third phase of the project to replace IAS 39 by IFRS 9. The mandatory effective
(19 November 2013) and effec- date of IFRS 9 was set at 1 January 2018 in February 2014. The date on which the Standard will be adopted by the EU has not
tive date (20 February 2014) yet been announced. The Group is assessing the effects of initial application of the Standard if it were to be adopted by the
EU in its current form.
IFRIC 21 (Levies) 1 January 2014 This Interpretation provides guidance on when to recognise a liability for a levy imposed by a government. It covers the
(20 May 2013) recognition of levies imposed in accordance with laws or regulations. It does not include taxes, fines and other outflows
that fall within the scope of other standards. The Group is currently reviewing the effects of this Interpretation on the
consolidated financial statements.
Amendments to IAS 19 1 July 2014 The amendments apply to the recognition of employee contributions to defined benefit retirement plans. Their objective
(Employee Benefits – is to simplify accounting for employee contributions that are independent of the number of years of service. In such cases,
Defined Benefit Plans: the service cost in the period in which the corresponding service is rendered may be reduced. The new requirements must
Employee Contributions) be applied retrospectively. Application will not lead to any significant effects.
(21 November 2013)
Annual Improvements 1 July 2014 The annual improvement process refers to the following standards: IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16, IAS 38, IAS 24.
to IFRS s 2010 – 2012 Cycle Application of the new requirements is mandatory for reporting periods beginning on or after 1 July 2014. The amendments
(12 December 2013) will not have a significant influence on the consolidated financial statements.
Annual Improvements 1 July 2014 The annual improvement process refers to the following standards: IFRS 1, IFRS 3, IFRS 13, IAS 40. Application of the
to IFRS s 2011 – 2013 Cycle new requirements is mandatory for reporting periods beginning on or after 1 July 2014. The amendments will not have
(12 December 2013) a significant influence on the consolidated financial statements.
The following are not relevant for the consolidated financial statements:
IFRS 14 (Regulatory Deferral Accounts) issued on 31 January 2014, effective for financial years beginning on or after 1 January 2016.
Loans and receivables A fair value hedge hedges the fair value of recognised assets
These are non-derivative financial assets with fixed or deter- and liabilities. Changes in the fair value of both the derivatives and
minable payments that are not quoted on an active market. Unless the hedged item are recognised in income simultaneously.
held for trading, they are recognised at cost or amortised cost at A cash flow hedge hedges the fluctuations in future cash flows
the balance sheet date. The carrying amounts of money market from recognised assets and liabilities (in the case of interest rate
receivables correspond approximately to their fair values due to risks), highly probable forecast transactions as well as unrecog-
their short maturity. Loans and receivables are considered current nised firm commitments that entail a currency risk. The effective
assets if they mature not more than 12 months after the balance portion of a cash flow hedge is recognised in the hedging reserve in
sheet date; otherwise, they are recognised as non-current assets. If equity. Ineffective portions resulting from changes in the fair value
the recoverability of receivables is in doubt, they are recognised of the hedging instrument are recognised directly in income. The
at amortised cost, less appropriate specific or collective valuation gains and losses generated by the hedging transactions are initially
allowances. A write-down on trade receivables is recognised if recognised in equity and are then reclassified to profit or loss in
there are objective indications that the amount of the outstanding the period in which the asset acquired or liability assumed affects
receivable cannot be collected in full. The write-down is recognised profit or loss. If a hedge of a firm commitment subsequently results
in the income statement via a valuation account. in the recognition of a non-financial asset, the gains and losses
recognised directly in equity are included in the initial carrying
Financial assets at fair value through profit or loss amount of the asset (basis adjustment).
All financial instruments held for trading and derivatives that Net investment hedges in foreign entities are treated in the
do not satisfy the criteria for hedge accounting are assigned to this same way as cash flow hedges. The gain or loss from the effective
category. They are generally measured at fair value. All changes portion of the hedge is recognised in other comprehensive income,
in fair value are recognised in income. All financial instruments whilst the gain or loss attributable to the ineffective portion is
in this category are accounted for at the trade date. Assets in this recognised directly in income. The gains or losses recognised in
category are recognised as current assets if they are either held for other comprehensive income remain there until the disposal or
trading or will likely be realised within 12 months of the balance partial disposal of the net investment. Detailed information on
sheet date. hedging transactions can be found in Note 50.2.
To avoid variations in earnings resulting from changes in the Regular way purchases and sales of financial assets are recog
fair value of derivative financial instruments, hedge accounting is nised at the settlement date, with the exception of held-for-trading
applied where possible and economically useful. Gains and losses instruments, particularly derivatives. A financial asset is derecog
from the derivative and the related hedged item are recognised in nised if the rights to receive the cash flows from the asset have
income simultaneously. Depending on the hedged item and the risk expired. Upon transfer of a financial asset, a review is made u nder
to be hedged, the Group uses fair value hedges and cash flow hedges. the requirements of IAS 39 governing disposal as to whether the
The carrying amounts of financial assets not carried at fair asset should be derecognised. A disposal gain / loss arises upon
value through profit or loss are tested for impairment at each bal- disposal. The remeasurement gains / losses recognised in other
ance sheet date and whenever there are indications of impairment. comprehensive income in prior periods must be reversed as at the
The amount of any impairment loss is determined by comparing disposal date. Financial liabilities are derecognised if the payment
the carrying amount and the fair value. If there are objective in- obligations arising from them have expired.
dications of impairment, an impairment loss is recognised in the
income statement under other operating expenses or net financial Investment property
income / net finance costs. Impairment losses are reversed if there In accordance with IAS 40, investment property is property
are objective reasons arising after the balance sheet date indicating held to earn rentals or for capital appreciation or both, rather than
that the reasons for impairment no longer exist. The increased for use in the supply of services, for administrative purposes, or
carrying amount resulting from the reversal of the impairment loss for sale in the normal course of the company’s business. It is meas-
may not exceed the carrying amount that would have been deter- ured in accordance with the cost model. Depreciable investment
mined (net of amortisation or depreciation) if the impairment loss property is depreciated over a period of between 20 and 50 years
had not been recognised. Impairment losses are recognised within using the straight-line method. The fair value is determined on
the Group if the debtor is experiencing significant financial diffi- the basis of expert opinions. Impairment losses are recognised in
culties, it is highly probable that the debtor will be the subject of accordance with the principles described under the section headed
bankruptcy proceedings, there are material changes in the issuer’s Impairment.
technological, economic, legal or market environment, or the fair
value of a financial instrument falls below its amortised cost for a
prolonged period.
The Group’s defined benefit retirement plans Defined contribution retirement plans for the Group’s
Defined benefit pension obligations are measured u sing the hourly workers and salaried employees
projected unit credit method prescribed by IAS 19. This involves The contributions to defined contribution retirement plans
making certain actuarial assumptions. Most of the defined benefit for the Group’s hourly workers and salaried employees are also
retirement plans are at least partly funded via external plan recognised in staff costs.
assets. The remaining net obligations are funded by provisions for This also includes contributions to multi-employer plans,
pensions and similar obligations; net assets are presented sepa which are basically defined benefit plans, particularly in the USA
rately as pension assets. Where necessary, an asset ceiling must be and the Netherlands. The relevant institutions do not provide
applied when recognising pension assets. With regard to the cost the participating companies with sufficient information to allow
components, the service cost is recognised in staff costs, the net the use of defined benefit accounting. The plans are therefore
interest cost in net other finance costs and any remeasurement out- accounted for as if they were defined contribution plans.
side profit and loss in other comprehensive income. Contributions are paid into these multi-employer plans in
the USA based on collective agreements between e mployers and
Defined contribution retirement plans for civil servant the local unions. There is no employer liability to any of the plans
employees in Germany beyond the normal contribution rates negotiated in collective
Deutsche Post AG pays contributions to defined contribution bargaining except in the event of a withdrawal that meets speci-
plans for civil servants in Germany in accordance with statutory fied criteria. At the end of 2013, there existed no agreements with
provisions. These contributions are recognised in staff costs. any of these multi-employer plans beyond the collective agree-
Under the provisions of the Gesetz zum Personalrecht ments that set the contribution rates. Employer contributions
der Beschäftigten der früheren Deutschen Bundespost (Post- to pension funds are expected to amount to €23 million in 2014
PersRG – Former Deutsche Bundespost Employees Act), intro- (actual e mployer c ontributions in financial year 2013: €23 million).
duced as article 4 of the Gesetz zur Neuordnung des Postwesens According to information made available by the pension funds,
und der Tele kommunikation (PTNeuOG – German Posts and some of the plans to which Deutsche Post DHL makes contribu-
Telecommuni cations Reorganisation Act), Deutsche Post AG tions are underfunded. There is no available information from
provides benefit and assistance payments through a special pen- the plans themselves which would indicate any change from the
sion fund for postal civil servants (Postbeamtenversorgungskasse) contribution rates set in the 2013 collective agreements. At pres-
operated jointly, since early 2001, by the Deutsche Bundespost ent, Deutsche Post DHL does not account for a significant share of
successor companies, the Bundes-Pensions-Service für Post und the contributions to the pension funds except for one fund where
Telekommunikation e. V. (BPS-PT), to retired employees or their Deutsche Post DHL is the largest contributor.
surviving dependants who are entitled to benefits on the basis of a Contribution rates for one of the multi-employer retirement
civil service appointment. At the beginning of 2013, Bundesanstalt plans in the Netherlands are determined each year by the manage-
für Post und Telekommunikation (BAnstPT – Federal Posts and ment body of the pension fund with the involvement of the central
Telecommunications Agency) assumed the rights and obligations bank of the Netherlands, based on cost coverage. These contribu-
of the BPS-PT. It has undertaken the tasks of the pension fund for tion rates are the same for all employers and employees involved.
postal civil servants since that time. The amount of Deutsche Post There is no employer liability towards the fund beyond the con-
AG’s payment obligations is governed by section 16 of the Post- tributions set, even in the case of withdrawal. Any subsequent
PersRG. Since 2000, this Act has obliged Deutsche Post AG to pay underfunding ultimately results in the rights of members being
into the postal civil servant pension fund an annual contribution cut and / or no indexation of their rights. Employer contributions
of 33 % of the gross compensation of its active civil servants and the to the pension fund are expected to amount to €21 million in 2014
notional gross compensation of civil servants on leave of absence (actual employer contributions in financial year 2013: €21 million).
who are eligible for a pension. According to information made available by the pension fund, the
Under section 16 of the PostPersRG, the federal government plan is not underfunded at present. Deutsche Post DHL does not
makes good the difference between the current payment obliga- represent a significant level to the fund in terms of contributions.
tions of the postal civil servant pension fund on the one hand, and
the funding companies’ current contributions or other return on
assets on the other, and guarantees that the postal civil servant
pension fund is able at all times to meet the obligations it has as-
sumed in respect of its funding companies. Insofar as the federal
government makes payments to the postal civil servant pension
fund under the terms of this guarantee, it cannot claim reimburse-
ment from Deutsche Post AG.
Income taxes of tax planning strategies are revised downwards, or in the event
Income tax assets and liabilities are measured at the amounts that changes to current tax laws restrict the extent to which future
for which repayments from or payments to the tax authorities are tax benefits can be realised.
expected to be received or made. Goodwill is regularly reported in the Group’s balance sheet
as a consequence of business combinations. When an acquisition
Contingent liabilities is initially recognised in the consolidated financial statements, all
Contingent liabilities represent possible obligations whose identifiable assets, liabilities and contingent liabilities are measured
existence will be confirmed only by the occurrence or non-occur- at their fair values at the date of acquisition. One of the most import
rence of one or more uncertain future events not wholly within the ant estimates this requires is the determination of the fair values of
control of the enterprise. Contingent liabilities also include certain these assets and liabilities at the date of acquisition. Land, buildings
obligations that will probably not lead to an outflow of resources and office equipment are generally valued by independent experts,
embodying economic benefits, or where the amount of the outflow whilst securities for which there is an active market are recognised
of resources embodying economic benefits cannot be measured at the quoted exchange price. If intangible assets are identified in
with sufficient reliability. In accordance with IAS 37, contingent the course of an acquisition, their measurement can be based on
liabilities are not recognised as liabilities; Note 51. the opinion of an independent external expert valuer, depending
on the type of intangible asset and the complexity involved in
8 Exercise of judgement in applying the accounting policies determining its fair value. The independent expert determines the
The preparation of IFRS-compliant consolidated financial fair value using appropriate valuation techniques, normally based
statements requires the exercise of judgement by management. on expected future cash flows. In addition to the assumptions
All estimates are reassessed on an ongoing basis and are based about the development of future cash flows, these valuations are
on historical experience and expectations with regard to future also significantly affected by the discount rates used.
events that appear reasonable under the given circumstances. For Impairment testing for goodwill is based on assumptions with
example, this applies to assets held for sale. In this case, it must be respect to the future. The Group carries out these tests annually
determined whether the assets are available for sale in their pres- and also whenever there are indications that goodwill has become
ent condition and whether their sale is highly probable. If this is impaired. The recoverable amount of the CGU must then be calcu-
the case, the assets and the associated liabilities are reported and lated. This amount is the higher of fair value less costs to sell and
measured as assets held for sale and liabilities associated with value in use. Determining value in use requires adjustments and
assets held for sale. estimates to be made with respect to forecasted future cash flows
and the discount rate applied. Although management believes that
Estimates and assessments made by management the assumptions made for the purpose of calculating the recover
The preparation of the consolidated financial statements able amount are appropriate, possible unforeseeable changes in
in accordance with IFRS s requires management to make certain these assumptions – e. g., a reduction in the EBIT m argin, an in-
assumptions and estimates that may affect the amounts of the a ssets crease in the cost of capital or a decline in the long-term growth
and liabilities included in the balance sheet, the amounts of income rate – could result in an impairment loss that could negatively affect
and expenses, and the disclosures relating to contingent liabilities. the Group’s net assets, financial position and results of operations.
Examples of the main areas where assumptions, estimates and the
exercise of management judgement occur are the recognition of
provisions for pensions and similar obligations, the calculation of
discounted cash flows for impairment testing and purchase price
allocations, taxes and legal proceedings.
Disclosures regarding the assumptions made in connection
with defined benefit retirement plans can be found in Note 44.
The Group has operating activities around the globe and
is subject to local tax laws. Management can exercise judgement
when calculating the amounts of current and deferred taxes in the
relevant countries. Although management believes that it has made
a reasonable estimate relating to tax matters that are inherently
uncertain, there can be no guarantee that the actual outcome of
these uncertain tax matters will correspond exactly to the original
estimate made. Any difference between actual events and the esti-
mate made could have an effect on tax liabilities and deferred taxes
in the period in which the matter is finally decided. The amount
recognised for deferred tax assets could be reduced if the estimates
of planned taxable income or the tax benefits achievable as a result
Pending legal proceedings in which the Group is involved are 9 Consolidation methods
disclosed in Note 53. The outcome of these proceedings could The consolidated financial statements are based on the IFRS
have a significant effect on the net assets, financial position and financial statements of Deutsche Post AG and the subsidiaries, joint
results of operations of the Group. Management regularly a nalyses ventures and associates included in the consolidated financial
the information currently available about these proceedings and statements and prepared in accordance with uniform accounting
recognises provisions for probable obligations including estimated policies as at 31 December 2013.
legal costs. Internal and external legal advisers participate in Acquisition accounting for subsidiaries included in the
making this assessment. In deciding on the necessity for a p rovision, consolidated financial statements uses the purchase method of
management takes into account the probability of an unfavourable accounting. The cost of the acquisition corresponds to the fair value
outcome and whether the amount of the obligation can be esti- of the assets given up, the equity instruments issued and the liabil-
mated with sufficient reliability. The fact that an action has been ities assumed at the transaction date. Acquisition-related costs are
launched or a claim asserted against the Group, or that a legal dis- recognised as expenses. Contingent consideration is recognised at
pute has been disclosed in the Notes, does not necessarily mean fair value at the date of initial consolidation.
that a provision is recognised for the associated risk. Joint ventures are proportionately consolidated in accord-
All assumptions and estimates are based on the circum- ance with IAS 31. Assets and liabilities, as well as income and
stances prevailing and assessments made at the balance sheet expenses, of jointly controlled companies are included in the con-
date. For the purpose of estimating the future development of the solidated financial statements in proportion to the interest held in
business, a realistic assessment was also made at that date of the these companies. Proportionate acquisition accounting as well as
economic environment likely to apply in the future to the different recognition and measurement of goodwill use the same methods
sectors and regions in which the Group operates. In the event of as applied to the consolidation of subsidiaries.
developments in this general environment that diverge from the Companies on which the parent can exercise significant
assumptions made, the actual amounts may differ from the esti- influence (associates) are accounted for in accordance with the
mated amounts. In such cases, the assumptions made and, where equity method using the purchase method of accounting. Any
necessary, the carrying amounts of the relevant assets and liabil goodwill is included in the carrying amounts of the investments.
ities are adjusted accordingly. In the case of step acquisitions, the equity portion previ-
At the date of preparation of the consolidated financial state- ously held is remeasured at the fair value applicable on the date
ments, there is no indication that any significant change in the of acquisition and the resulting gain or loss recognised in profit
assumptions and estimates made will be required, so that on the or loss.
basis of the information currently available it is not expected that Intra-group revenue, other operating income, and expenses
there will be any significant adjustments in financial year 2014 to as well as receivables, liabilities and provisions between companies
the carrying amounts of the assets and liabilities recognised in the that are consolidated fully or on a proportionate basis are elimi-
financial statements. nated. Intercompany profits or losses from intra-group deliveries
and services not realised by sale to third parties are eliminated. Un-
realised gains and losses from business transactions with associates
are eliminated on a pro rata basis.
SEGMENT REPORTING
10 Segment reporting
Segments by division
€ m GLOBAL FORWARDING, Corporate Center /
MAIL EXPRESS FREIGHT SUPPLY CHAIN Other Consolidation Group
1 Jan. to 31 Dec. 2012 1 2013 2012 1 2013 2012 1 2013 2012 1 2013 2012 1 2013 2012 1 2013 2012 1 2013
External revenue 13,874 14,344 12,378 12,332 14,980 14,151 14,229 14,187 51 71 0 0 55,512 55,085
Internal revenue 98 108 400 380 686 687 111 90 1,152 1,180 –2,447 –2,445 0 0
Total revenue 13,972 14,452 12,778 12,712 15,666 14,838 14,340 14,277 1,203 1,251 –2,447 –2,445 55,512 55,085
Profit / loss from
operating activities
(EBIT) 1,048 1,226 1,110 1,133 514 483 419 441 – 423 – 421 –3 –1 2,665 2,861
Net income from
associates 0 0 0 0 2 2 0 0 0 0 0 0 2 2
Segment assets 4,433 4,670 8,684 8,721 7,951 7,659 6,264 5,974 1,322 1,491 –215 –105 28,439 28,410
Investments
in associates 0 0 28 28 18 20 0 0 0 0 0 0 46 48
Segment liabilities 2 2,505 2,492 2,547 2,915 2,950 2,929 2,825 2,908 797 845 –120 –112 11,504 11,977
Capex 332 434 597 508 150 129 300 277 318 407 0 0 1,697 1,755
Depreciation
and amortisation 333 346 382 386 111 92 286 270 199 209 0 0 1,311 1,303
Impairment losses 1 12 18 22 0 0 2 0 7 4 0 0 28 38
Total depreciation,
amortisation and
impairment losses 334 358 400 408 111 92 288 270 206 213 0 0 1,339 1,341
Other non-cash
expenses 306 273 277 256 77 87 126 107 57 115 1 0 844 838
Employees 3 146,923 149,692 84,623 84,986 43,590 44,174 140,193 143,761 12,958 12,907 0 0 428,287 435,520
1 Jan. to 31 Dec. 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013
External revenue 16,825 17,074 17,840 17,628 9,819 9,563 8,619 8,526 2,409 2,294 55,512 55,085
Non-current assets 4,759 5,125 7,228 7,015 3,408 3,244 3,227 3,025 332 332 18,954 18,741
Capex 979 1,128 259 227 259 180 160 165 40 55 1,697 1,755
1
Prior-year amounts adjusted Note 4.
2
Including non-interest-bearing provisions.
3
Average FTE s.
10.1 Segment reporting disclosures The expenses for IT services provided in the IT service centres
Deutsche Post DHL reports four operating segments; these are allocated to the divisions by their origin. The additional costs
are managed independently by the responsible segment manage- resulting from Deutsche Post AG’s universal postal service obliga-
ment bodies in line with the products and services offered and tion (nationwide retail outlet network, delivery every working day),
the brands, distribution channels and customer profiles involved. and from its obligation to assume the compensation structure as
Components of the entity are defined as a segment on the basis of the legal successor to Deutsche Bundespost, are allocated to the
the existence of segment managers with bottom-line responsibility MAIL division.
who report directly to Deutsche Post DHL’s top management.
External revenue is the revenue generated by the divisions
from non-Group third parties. Internal revenue is revenue gener-
ated with other divisions. If comparable external market prices exist
for services or products offered internally within the Group, these
market prices or market-oriented prices are used as transfer prices
(arm’s length principle). The transfer prices for services for which
no external market exists are generally based on incremental costs.
Reconciliation
€ m Reconciliation to Group /
Total for reportable segments Corporate Center / Other Consolidation Consolidated amount
The following table shows the reconciliation of The following table shows the reconciliation of
Deutsche Post DHL’s total assets to the segment assets. Financial Deutsche Post DHL’s total liabilities to the segment liabilities. The
assets, income tax assets, deferred taxes, cash and cash equiva- interest-bearing components of the provisions and liabilities as
lents as well as additional interest-bearing asset components are well as income tax liabilities and deferred taxes are deducted.
deducted.
Reconciliation of segment liabilities
Reconciliation of segment assets € m
€ m 2012 1 2013
2012 1
2013 Total equity and liabilities 33,857 35,478
Total assets 33,857 35,478 Equity – 9,228 –10,048
Investment property – 43 –33 Consolidated liabilities 24,629 25,430
Non-current financial assets including investments Non-current provisions –7,315 – 6,715
in associates –1,085 –1,172 Non-current liabilities – 4,689 – 4,839
Other non-current assets –200 –125 Current provisions –182 –143
Deferred tax assets –1,328 –1,327 Current liabilities – 939 –1,756
Income tax assets –127 –168 Segment liabilities 11,504 11,977
Receivables and other current assets –10 –7 of which Corporate Center / Other 797 845
Current financial assets –225 – 819 Total for reportable segments 10,827 11,244
Cash and cash equivalents –2,400 –3,417 Consolidation –120 –112
Segment assets 28,439 28,410 1
Prior-year amounts adjusted Note 4.
of which Corporate Center / Other 1,322 1,491
Total for reportable segments 27,332 27,024
Consolidation –215 –105
1
Prior-year amounts adjusted Note 4.
INCOME STATEMENT DISCLOSURES The decline in other operating income is largely attributable
to the lower income from the reversal of provisions. In the previous
11 Revenue year, the income from the reversal of provisions primarily reflected
changes in the assessment of settlement payment obligations
€ m assumed in the context of the restructuring measures in the USA.
2012 2013 €31 million of the gains on disposal of non-current assets is
Revenue 55,512 55,085 attributable to the deconsolidation gains on the sale of subsidiaries;
Note 2.
The higher income from the remeasurement of liabilities
Revenue declined by €427 million (0.8 %) year-on-year to in the previous year related largely to the reversal of accruals no
€55,085 million. The decrease was due to the following factors: longer required.
Subsidies relate to grants for the purchase or production of
Factors affecting revenue decrease assets. The grants are reported as deferred income and recognised
€ m in the income statement over the useful lives of the assets.
2013 Miscellaneous other operating income includes a large num-
Organic growth 1,548 ber of smaller individual items.
Portfolio changes 1 –287
Currency translation effects
Other factors 2
–1,738
50
13 Materials expense
Total – 427
€ m
1
Disclosures Note 2.
2
See Note 45.1 for changes in the provision for postage stamps. 2012 2013
Income from the reversal of provisions 396 206 Cost of temporary staff 2,015 2,005
Insurance income 172 191 Expenses from non-cancellable leases 1,730 1,696
Income from currency translation differences 178 155 Maintenance costs 965 969
Income from fees and reimbursements 145 133 Expenses from cancellable leases 545 551
Gains on disposal of non-current assets 127 112 Commissions paid 456 467
Commission income 119 105 Expenses for the use of Postbank branches 430 409
Income from the remeasurement of liabilities 193 101 Other lease expenses (incidental expenses) 254 261
Income from work performed and capitalised 105 88 Other purchased services 1,394 1,356
€ m € m
2012 2013 2012 2013
Wages, salaries and compensation 1 14,209 14,307 Amortisation of and impairment losses on intangible
of which expenses under Share Matching Scheme 91 82 assets, excluding impairment of goodwill 295 290
of which expenses from 2006 SAR Plan / LTIP 143 202 Depreciation of and impairment losses on property,
plant and equipment
Social security contributions 2,094 2,111
Land and buildings (including leasehold
Retirement benefit expenses 1 954 883
improvements) 180 174
Expenses for other employee benefits 336 357
Technical equipment and machinery 242 252
Expenses for severance payments 177 127
Other equipment, operating and office
Staff costs 17,770 17,785 equipment, vehicle fleet 420 409
1
Prior-year amounts adjusted Note 4. Aircraft 202 215
1,044 1,050
Impairment losses on investment property 0 1
The increase in wage, salary and compensation payments due 1,339 1,341
to the higher headcount and staff costs was cushioned by exchange Impairment of goodwill 0 0
rate effects. Depreciation, amortisation and impairment losses 1,339 1,341
€62 million of the expenses under the Share Matching
Scheme (previous year: €72 million) is attributable to cash-settled
share-based payments. This amount corresponds to the obligation Depreciation, amortisation and impairment losses increased
at the balance sheet date. In addition, expenses of €20 million by €2 million year-on-year to €1,341 million. This figure includes
(previous year: €19 million) were incurred for equity-settled share- impairment losses of €38 million (previous year: €28 million). The
based payments. impairment losses are attributable to the segments as follows:
Staff costs relate mainly to wages, salaries and compensation,
as well as all other benefits paid to employees of the Group for their Impairment losses on non-current assets
services in the year under review. Social security contributions € m
relate in particular to statutory social security contributions paid 2012 2013
by employers. 1 12
MAIL
Retirement benefit expenses include the service cost related Intangible assets 0 12
to the defined benefit retirement plans. Detailed information can Property, plant and equipment 1 0
be found in Note 44. These expenses also include contributions
EXPRESS 18 22
to defined contribution retirement plans for civil servants in
Property, plant and equipment 18 22
Germany in the amount of €538 million (previous year: €542 mil-
of which technical equipment and machinery 0 3
lion), as well as for the Group’s hourly workers and salaried of which aircraft 18 19
employees – particularly in the UK, the USA and the Netherlands –
SUPPLY CHAIN 2 0
in the amount of €286 million (previous year: €238 million).
Intangible assets 1 0
The average number of Group employees in the year under
Property, plant and equipment 1 0
review, broken down by employee group, was as follows:
of which technical equipment and machinery 1 0
€ m € m
2012 2013 2012 2013
Expenses for advertising and public relations 341 341 Net income from associates 2 2
Cost of purchased cleaning and security services 315 321
Travel and training costs 344 315
Other business taxes 550 301
Investments in companies on which a significant influence
Insurance costs 240 271
can be exercised and which are accounted for using the equity
Warranty expenses and compensation payments 237 259
method contributed €2 million (previous year: €2 million) to net
Write-downs of current assets 198 226
finance costs. As in the previous year, this contribution mainly
Telecommunication costs 227 220
Office supplies 172 180
relates to Danzas AEI Emirates LLC, United Arab Emirates.
Consulting costs 206 177
Expenses from currency translation differences 181 156 18 Net other finance costs
Entertainment and corporate hospitality expenses 144 147
Services provided by the Federal Posts and € m
Telecommunications Agency 87 93 2012 2013
Losses on disposal of assets 59 87
Voluntary social benefits 78 80 Other financial income
19 Income taxes The effects from deferred tax assets of German Group com
panies not recognised for tax loss carryforwards and temporary
€ m differences relate primarily to Deutsche Post AG and members of
2012 2013 its consolidated tax group. Effects from deferred tax assets of for-
Current income tax expense – 591 – 604 eign companies not recognised for tax loss carryforwards and tem-
Current recoverable income tax 4 198 porary differences relate primarily to the Americas region.
– 587 – 406 €106 million (previous year: €85 million) of the effects from
Deferred tax expense from temporary differences 1 – 47 – 87
deferred tax assets not recognised for tax loss carryforwards and
Deferred tax income from tax loss carryforwards 187 132
temporary differences relates to the reduction of the effective in-
140 45
come tax expense due to the utilisation of tax loss carryforwards
Income taxes – 447 –361
and temporary differences, for which deferred tax assets had previ-
1
Prior-year amounts adjusted Note 4.
ously not been recognised. In addition, the recognition of deferred
taxes previously not recognised for tax loss carryforwards and of
The reconciliation to the effective income tax expense is deductible temporary differences from a prior period reduced the
shown below, based on consolidated net profit before income taxes deferred tax expense by €208 million (previous year: €207 mil-
and the expected income tax expense: lion). Effects from unrecognised deferred tax assets amounting to
€10 million (previous year: €79 million, write-down) were due to
Reconciliation a valuation allowance recognised for a deferred tax asset. Other
€ m effects from unrecognised deferred tax assets primarily relate to
2012 2013 tax loss carryforwards for which no deferred taxes were recognised.
Profit before income taxes 1 2,209 2,572 A deferred tax asset in the amount of €7 million (previous
Expected income taxes – 658 –766 year: €979 million) was recognised in the balance sheet for com-
Deferred tax assets not recognised for initial panies that reported a loss in the previous year or in the current
differences 6 20
period as, based on tax planning, realisation of the tax asset is
Deferred tax assets of German Group companies
not recognised for tax loss carryforwards and probable.
temporary differences 105 242 In financial year 2013, as in the previous year, German Group
Deferred tax assets of foreign Group companies companies were not affected by tax rate changes. The change in
not recognised for tax loss carryforwards and
temporary differences 141 51 the tax rate in some foreign tax jurisdictions did not lead to any
Effect of current taxes from previous years –70 113 significant effects.
Tax-exempt income and non-deductible expenses – 42 – 87 The effective income tax expense includes prior-period tax
Differences in tax rates at foreign companies 71 66 expenses from German and foreign companies in the amount of
Income taxes – 447 –361 €113 million (tax income) (previous year: expense of €70 million).
1
Prior-year amounts adjusted Note 4. The following table presents the tax effects on the compo-
nents of other comprehensive income:
24 Intangible assets
24.1 Overview
€ m Advance
Internally Other payments and
generated purchased intangible
intangible Purchased Purchased intangible assets under
assets brand names customer lists assets Goodwill development Total
Cost
Balance at 1 January 2012 1,049 481 942 1,423 12,108 89 16,092
Additions from business combinations 0 0 0 0 33 0 33
Additions 65 0 4 134 0 101 304
Reclassifications 27 10 0 33 0 – 49 21
Disposals – 57 0 0 – 92 –29 –7 –185
Currency translation differences –1 11 –2 2 – 53 0 – 43
Balance at 31 December 2012 / 1 January 2013 1,083 502 944 1,500 12,059 134 16,222
Additions from business combinations 1 0 0 4 31 0 36
Additions 39 0 0 79 0 126 244
Reclassifications 23 0 0 22 0 –36 9
Disposals –30 0 0 – 90 –22 –1 –143
Currency translation differences –3 –12 –36 –35 –294 0 –380
Balance at 31 December 2013 1,113 490 908 1,480 11,774 223 15,988
Purchased software, concessions, industrial rights, licences The additions to goodwill are attributable to optivo GmbH
and similar rights and assets are reported under purchased intan- (€17 million), Compador Technologies (€4 million), RISER ID
gible assets. Internally generated intangible assets relate to develop- (€5 million) and All you need (€5 million).
ment costs for internally developed software. Other than goodwill, Of the net disposals of goodwill, €4 million relates to Cargus
only brand names that are acquired in their entirety are considered International, €7 million to ITG Group and €6 million to Exel
to have indefinite useful lives. Direct; Note 2.
24.2 Allocation of goodwill to CGU s The cash flow projections are based on the detailed planning
for EBIT, depreciation /
amortisation and investment planning
€ m adopted by management, as well as changes in net working capital,
2012 2013 and take both internal historical data and external macroeconomic
10,922 10,677
data into account. From a methodological perspective, the detailed
Total goodwill
planning phase covers a three-year planning horizon from 2014 to
MAIL 646 667
2016. It is supplemented by a perpetual annuity representing the
EXPRESS 4,092 4,069 value added from 2017 onwards. This is calculated using a long-
term growth rate, which is determined for each CGU separately
GLOBAL FORWARDING, FREIGHT
DHL Global Forwarding 3,802 3,653
and which is shown in the table below. The growth rates applied
DHL Freight 320 316 are based on long-term real growth figures for the relevant econ-
omies, growth expectations for the relevant sectors and long-term
SUPPLY CHAIN
inflation forecasts for the countries in which the CGU s operate. The
DHL Supply Chain 1,640 1,561
cash flow forecasts are based both on past experience and on the
Williams Lea 422 411
effects of the anticipated future general market trend. In addition,
the forecasts take into account growth in the respective geograph
For the purposes of annual impairment testing in accordance ical submarkets and in global trade, and the ongoing trend towards
with IAS 36, the Group determines the recoverable amount of a outsourcing logistics activities. Cost trend forecasts for the trans-
CGU on the basis of its value in use. This calculation is based on portation network and services also have an impact on value in use.
projections of free cash flows that are initially discounted at a rate The pre-tax cost of capital is based on the weighted average
corresponding to the post-tax cost of capital. Pre-tax discount rates cost of capital. The (pre-tax) discount rates for the individual CGU s
are then determined iteratively. and the growth rates assumed in each case for the perpetual annu-
ity are shown in the following table:
SUPPLY CHAIN
DHL Supply Chain 9.2 9.3 2.5 2.5
Williams Lea 7.8 9.1 2.0 2.0
€ m Other
equipment, Advance
Technical operating Vehicle fleet payments and
Land equipment and office and transport assets under
and buildings and machinery equipment Aircraft equipment development Total
Cost
Balance at 1 January 2012 4,489 4,291 2,479 1,707 2,040 444 15,450
Additions from business combinations 2 2 3 0 0 0 7
Additions 88 138 160 116 278 613 1,393
Reclassifications 88 201 52 402 33 –782 –6
Disposals –124 – 616 –168 –162 –238 –13 –1,321
Currency translation differences –3 –6 –6 –6 1 1 –19
Balance at 31 December 2012 / 1 January 2013 4,540 4,010 2,520 2,057 2,114 263 15,504
Additions from business combinations 1 13 3 0 4 0 21
Additions 214 151 189 34 283 640 1,511
Reclassifications 74 177 44 228 26 – 550 –1
Disposals –155 –197 –180 –150 –239 –10 – 931
Currency translation differences – 97 – 89 – 86 –16 –30 –4 –322
Balance at 31 December 2013 4,577 4,065 2,490 2,153 2,158 339 15,782
Carrying amount at 31 December 2013 2,375 1,272 566 1,185 1,078 338 6,814
Carrying amount at 31 December 2012 2,364 1,278 573 1,170 1,016 262 6,663
€ m € m
2012 2013 2012 2013
Land and buildings 47 155
Cost
Technical equipment and machinery 5 3
At 1 January 61 53
Other equipment, operating and office equipment 12 10
Additions 0 2
Aircraft 212 160
Reclassifications –6 –8
Vehicle fleet and transport equipment 4 2
Disposals –2 –4
Finance leases 280 330
Currency translation differences 0 0
At 31 December 53 43
The increase in land and buildings under finance leases is due Depreciation
to newly leased delivery bases in Germany. Information on the At 1 January 21 10
corresponding liabilities can be found under fi
nancial liabilities; Additions 0 1
Note 46.3. Impairment losses 0 1
Disposals 0 –2
Reclassifications –11 0
At 31 December 10 10
Carrying amount at 31 December 43 33
Fair value
€ m Valuation technique Inputs Input range Weighted average
Developed land – Germany 14 Comparison method Price per m 2 €270 –€470 / m 2 €370 / m 2
Leased property encumbered by heritable building
rights – Germany 39 Investment method Price per m 2 – –
Expected €650 thousand p.a.
Warehouse – Germany 5 DCF method rental income – less expenses
Property – Angola 2 Offered quotes – – –
US$90 thousand –
Property – USA 14 Comparison method Price per acre 115 thousand / acre US$105 thousand / acre
There were no transfers between levels in financial year 2013. Aggregate balance sheets
€ m
27 Investments in associates 2012 2013
Investments in associates changed as follows: Assets 469 450
Liabilities and provisions 373 453
€ m
2012 2013
At 1 January
Additions
44
3
46
0
28 Non-current financial assets
Changes in Group’s share of equity
€ m
Changes recognised in profit or loss 2 2
2012 2013
Profit distributions –1 0
Available-for-sale financial assets 162 256
Reclassified to current assets –2 0
Loans and receivables 737 729
Carrying amount at 31 December 46 48
Assets at fair value through profit or loss 115 107
Lease receivables 25 32
Non-current financial assets 1,039 1,124
29 Other non-current assets Deferred taxes have not been recognised for temporary dif-
ferences of €631 million (previous year: €563 million) relating to
€ m earnings of German and foreign subsidiaries because these tempo-
1 Jan. 2012 2012 2013 rary differences will probably not reverse in the foreseeable future.
Pension assets 1 162 198 120
Miscellaneous 118 100 64 Maturity structure
Other non-current assets 280 298 184
€ m
1
Prior-year amount adjusted Note 4. Short-term Long-term Netting Total
2013
Further information on pension assets can be found in Deferred
Note 44. tax assets 486 1,153 –312 1,327
Deferred
2012
€ m Deferred
tax assets 492 1,085 –249 1,328
1 Jan. 2012 2012 2013
Deferred
Deferred tax assets 1
1,206 1,328 1,327
tax liabilities 125 280 –249 156
Deferred tax liabilities 1 186 156 124
1
Prior-year amount adjusted Note 4.
31 Inventories
€ m 2012 2013
Standard costs for inventories of postage stamps and spare
parts in freight centres amounted to €15 million (previous year:
Assets Liabilities Assets Liabilities
Intangible assets 37 173 33 171
€15 million). There was no requirement to charge significant valu
Property, plant and ation allowances on these inventories.
equipment 93 46 110 47
Non-current financial assets 18 59 8 55 € m
Other non-current assets 7 25 42 38 2012 2013
Other current assets 38 33 71 63 Raw materials, consumables and supplies 184 183
Provisions 295 13 358 27 Work in progress 60 126
Financial liabilities 124 11 28 18 Finished goods and goods purchased and held
Other liabilities 104 45 150 17 for resale 52 69
Tax loss carryforwards 861 – 839 – Spare parts for aircraft 25 21
Gross amount 1,577 405 1,639 436 Advance payments 1 4
Netting –249 –249 –312 –312 Inventories 322 403
Carrying amount 1,328 156 1,327 124
€ m
1 Jan. 2012 1 2012 1 2013 All income tax assets and liabilities are current and have
Prepaid expenses 672 679 634 maturities of less than one year.
Current tax receivables 586 491 490
Receivables from private postal
agencies 8 148 157 36 Cash and cash equivalents
Income from cost absorption 86 61 71
Creditors with debit balances 38 43 33 € m
Receivables from loss compensation 2012 2013
(recourse claims) 23 25 25 Cash equivalents 884 2,078
Receivables from employees 25 23 25 Bank balances / cash in transit 1,430 1,222
Receivables from insurance business 16 20 20 Cash 13 22
Receivables from sale of assets 29 0 6 Other cash and cash equivalents 73 95
Receivables from cash-on-delivery 13 7 5 Cash and cash equivalents 2,400 3,417
Receivables from Bundes-Pensions-
Service für Post und Telekommu-
nikation e. V. 11 0 0
Miscellaneous other assets 648 656 755 37 Assets held for sale and liabilities associated with assets
Other current assets 2,155 2,153 2,221 held for sale
1
Prior-year amounts adjusted Note 4.
37.1 Overview
The amounts reported under this item mainly relate to the
following:
Deutsche Post AG The fair values of the properties held for sale by Deutsche
Deutsche Post AG plans to sell two properties in Groß Post AG and Deutsche Post DHL Corporate Real Estate Manage-
zöberitz-Heideloh and Berlin. The most recent appraisal of the ment GmbH & Co. Logistikzentren KG are determined on the
assets prior to reclassification did not result in any impairment. basis of level 3 inputs. These are quotes offered by potential buyers.
External expert appraisals are available to determine the fair
Deutsche Post DHL Corporate Real Estate Management value of the land and buildings held for sale in the USA. The com-
GmbH & Co. Logistikzentren KG parison method is used to determine fair value. The inputs which
The company plans to sell a property in Hamburg. The assets are assigned to level 2 are partly based on criteria such as the size,
and liabilities were reclassified as held for sale in accordance with age and condition of the land and buildings, the local economy
IFRS 5. The most recent appraisal of the assets prior to reclassifica- and comparable prices, and are adjusted accordingly. The principal
tion did not result in any impairment. input is the price per acre.
There were no transfers between levels in financial year 2013.
Exel Inc.
The company plans to sell two commercial buildings and an 38 Issued capital
industrial site in Pennsylvania.
38.1 Share capital
All You Need GmbH The convertible bond on Deutsche Post AG shares issued
In the third quarter of 2013, the Board of Management by KfW Bankengruppe (KfW) had been fully converted by the
resolved not to pursue its plan to resell All you need GmbH, Berlin, end of July 2013. KfW held a 21 % interest in the share capital of
which was acquired in financial year 2012. The company has been Deutsche Post AG as at 13 December 2013 (previous year: 25.5 %);
fully consolidated. Detailed information can be found in Note 2. the remaining 79 % of the shares are in free float (previous year:
74.5 %). KfW holds the shares in trust for the federal government.
37.2 Fair value measurement under IFRS 13
In accordance with IFRS 5, assets held for sale and liabilities Share ownership at 31 December
associated with assets held for sale are no longer depreciated or number of shares
amortised, but are recognised at the lower of their fair value less 2012 2013
costs to sell and their carrying amount. KfW 308,277,358 253,861,436
The following table shows how the fair values were measured Free float 900,738,516 955,154,438
on a non-recurring basis using different inputs. Share capital at 31 December 1,209,015,874 1,209,015,874
Assets held for sale and liabilities associated with assets held for sale
at 31 December 2013 38.2 Issued capital and purchase of treasury shares
€ m The issued capital amounts to €1,209 million. It is composed
Level 1 1 Level 2 2 Level 3 3 of 1,209,015,874 no-par value registered shares (ordinary shares)
Deutsche Post AG – real estate – – 20
with a notional interest in the share capital of €1 per share and is
Deutsche Post DHL Corporate Real
Estate Management GmbH & Co.
fully paid up.
Logistikzentren KG, Germany –
real estate – – 20 Changes in issued capital
Exel Inc., USA – real estate – 2 –
€
1
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
2012 2013
2
Level 2: quoted market prices that are observable directly (as a price) or indirectly
(derived from the price). At 1 January 1,209,015,874 1,209,015,874
3
Level 3: inputs that are not based on observable market data. Treasury shares acquired –1,770,503 –1,313,727
Treasury shares issued 1,770,503 1,313,727
At 31 December 1,209,015,874 1,209,015,874
Deutsche Post AG acquired 1.3 million shares at a total price Contingent Capital 2011
of €23.5 million, including transaction costs, in a number of trans- In its resolution dated 25 May 2011, the Annual General
actions in order to settle entitlements due under the bonus pro- Meeting authorised the Board of Management, subject to the
gramme for executives (Share Matching Scheme). In addition to consent of the Supervisory Board, to issue bonds with warrants,
the 2012 tranche, this includes 14 thousand shares issued to p
ersons convertible bonds and / or income bonds as well as profit partici-
who have since left the Group. Consequently, issued c apital was pation certificates, or a combination thereof, in an aggregate prin-
reduced by the notional value of the shares purchased. The average cipal amount of up to €1 billion, on one or more occasions until
purchase price per share was €17.94. The issued capital increased 24 May 2016, thereby granting options or conversion rights for up
again when the shares were issued to the executives. to 75 million shares with a proportionate interest in the share capi-
The notional value of the treasury shares is deducted from tal not to exceed €75 million.
issued capital, and the difference between the notional value and Based on this authorisation, Deutsche Post AG issued a €1 bil-
the reported value of the treasury shares is deducted from retained lion convertible bond on 6 December 2012, allowing holders to
earnings. convert the bond into up to 48 million Deutsche Post AG shares.
Changes in treasury shares are presented in the statement of Full use was made of the authorisation by issuing the bond. The
changes in equity. share capital is increased on a contingent basis by up to €75 million.
39 Capital reserves
The IFRS 3 revaluation reserve includes the hidden reserves
€ m of DHL Logistics Co. Ltd., China, from purchase price allocation.
2012 2013 These are attributable to the customer relationships contained in the
Capital reserves at 1 January 2,170 2,254 50 % interest held previously and to adjustments to deferred taxes.
Share Matching Scheme
Addition / issue of rights 40.2 IAS 39 revaluation reserve
under Share Matching Scheme
The revaluation reserve comprises gains and losses from
2009 tranche 2 1
2010 tranche 4 3
changes in the fair value of available-for-sale financial assets that
2011 tranche 18 4 have been recognised in other comprehensive income. This reserve
2012 tranche 10 17 is reversed to profit or loss either when the assets are sold or other
2013 tranche 0 10 wise disposed of, or if their value is significantly or permanently
Exercise of rights under Share Matching Scheme impaired.
2011 tranche –24 0
2012 tranche 0 –20 € m
10 15 2012 2013
Conversion right 74 0 At 1 January 93 0
Capital reserves at 31 December 2,254 2,269 Currency translation differences 0 1
Unrealised gains / losses –12 76
Share of associates – 81 0
Realised gains / losses 0 0
An amount of €35 million (31 December 2012: €34 million)
IAS 39 revaluation reserve at 31 December
was transferred to the capital reserves in the period up to 31 Decem- before tax 0 77
ber 2013 for the various tranches of the Share Matching Scheme. Deferred taxes –1 –9
The exercise of the rights to shares under the 2012 tranche IAS 39 revaluation reserve at 31 December
reduced the capital reserves by €20 million (previous year: €24 mil- after tax –1 68
lion for the 2011 tranche) due to the issuance of treasury shares in
this amount to the executives.
On issue of the convertible bond on Deutsche Post AG shares,
the conversion right was recognised in capital reserves; Note 46.
43 Non-controlling interests Annual increases in the fixed amounts during the service
eriod and in the pension payments are linked to agreed per-
p
€ m centages, i. e., 1.45% for hourly workers and salaried employees
1 Jan. 2012 1 2012 2013 actively employed and 1.00% for retirees. The plan also provides
Non-controlling interests 1 189 209 191 for invalidity benefits and surviving dependents’ benefits. Negative
1
Prior-year amount adjusted Note 4. past service cost was recognised in the reporting year due to an
internal change in the conditions for access to certain invalidity
This balance sheet item includes adjustments for the interests benefits. Retirement plans with a similar structure are available
of non-Group shareholders in the consolidated equity from acqui- to executives below the management board level and to specific
sition accounting, as well as their interests in profit or loss. The employee groups who can make use of deferred compensation.
interests relate primarily to the following companies: The large majority of Deutsche Post AG’s obligations relates to
the vested entitlements of hourly workers and salaried e mployees
€ m on the transition date in 1997 and to legacy pension commit-
2012 1 2013 ments towards former hourly workers and salaried employees
DHL Sinotrans International Air Courier Ltd., China 107 115 who had left or retired from the company by the transition date.
Blue Dart Express Limited, India 29 23 The amounts individually determined for the vested entitlements
Tradeteam Limited, UK 13 0 of the salaried employees and wage earners actively employed is
Other companies 60 53
subject to an annual rate of increase of 1.45%. These retirement
Non-controlling interests 209 191
plans are based on the Betriebsrentengesetz (BetrAVG – German
1
Prior-year amounts adjusted Note 4.
Occupational Pension Act), in addition to collective agreements
and other plan documents. The prime source of external funding
The remaining interest in Tradeteam Limited, UK, was is a captive trust that also services a support fund and a pension
acquired in financial year 2013. fund. The trust is funded on a case-by-case basis in line with the
The portion of other comprehensive income attributable to Group’s finance strategy and, in the case of the support fund, on
non-controlling interests largely relates to the currency translation an ongoing basis in line with tax law options. In the case of the
reserve. The changes are shown in the following table: pension fund the supervisory funding requirements are, in prin-
ciple, met without additional employer contributions. The support
€ m fund’s governing bodies include both Deutsche Post AG employees
2012 2013 and former employees. Part of the plan assets is invested in real
Balance at 1 January –5 –5 estate that is leased out to the Group on a long-term basis. In
Transactions with non-controlling interests 2 5 addition, some of the legacy pension commitments use Versor
Comprehensive income gungsanstalt der Deutschen Bundespost (VAP), a joint pension fund
Changes from unrealised gains and losses –2 –11
operated by the Deutsche Bundespost successor companies.
Changes from realised gains and losses 0 0
Individual subsidiaries in Germany have retirement plans
Currency translation reserve at 31 December –5 –11
that were acquired in the context of acquisitions and transfers of
operations and that are closed to new entrants.
In the UK, the Group’s defined benefit plans have largely
44 Provisions for pensions and similar obligations been closed to new entrants for a number of years. In addition,
Deutsche Post DHL committed itself to a change in its pension
€ m strategy in the UK on 26 November 2013. The plans will also largely
1 Jan. 2012 1 2012 1 2013 be closed for further service accrual as of 1 April 2014. As a result,
Provisions for pensions and similar negative past service cost was recognised in financial year 2013 as
obligations 6,055 5,216 5,017
shown in the tables below (before closure costs and transitional pay-
1
Prior-year amount adjusted Note 4.
ments). With effect from 1 April 2014, the employees a ffected will
be able to participate in a defined contribution plan. The majority
The Group’s most important defined benefit retirement plans of the (defined benefit) plans have been consolidated into a single
are in Germany and the UK. plan with different sections for the participating divisions. These
In Germany, Deutsche Post AG has an occupational retire- are largely funded via a master trust. The amount of the employer
ment plan dating back to 1997 based on a collective agreement, contributions must be negotiated with the trustee in the course of
which is open to new hourly workers and salaried employees. The funding valuations. The trustee’s directors are Group e mployees,
plan is based on fixed benefit amounts and provides for monthly former employees and non-Group third parties, all of whom are
payments as from the statutory retirement age, depending on required to be independent. At present, eligible employees make
length of service and the wage / salary level achieved. their own contributions to retirement plan funding or waive a
portion of their salary. These (defined benefit) plans are based
primarily on the corresponding trust agreements and the UK
Pensions Act.
A wide variety of other defined benefit plans in the Group are The Group companies in these three countries primarily use
to be found in the Netherlands, Switzerland, the USA and a large joint funding institutions within the Group. In the Netherlands
number of other countries. and in Switzerland, both employers and employees contribute
In the Netherlands, collective agreements require that those to plan funding. In the USA no contributions are currently made
employees who are not covered by a sector-specific plan participate to the companies’ defined benefit plans. There were no material
in a dedicated defined benefit plan. This final salary scheme pro- amendments, curtailments or settlements affecting the Group’s
vides for monthly pension payments that increase in line with the defined benefit plans in the Other area.
agreed salary increases on the one hand and the funds available for Various risks arise in the context of defined benefit plans. Of
such increases on the other. these risks, the interest rate risk and investment risk in particular
In Switzerland, employees receive an occupational pension in are still deemed to be significant.
line with statutory requirements, depending on the contributions The information below on pension obligations is broken
paid, an interest rate that is fixed each year, certain annuity factors down into the following areas: Germany, UK and Other.
and any pension increases specified.
In the USA, the companies’ defined benefit plans have been 44.1 Calculation of the balance sheet items
closed to new entrants and accrued entitlements have been frozen. The balance sheet items were arrived at as follows:
€ m
Germany UK Other Total
31 December 2013
Present value of defined benefit obligations at 31 December 8,439 4,395 1,963 14,797
Fair value of plan assets at 31 December – 4,119 – 4,034 –1,752 – 9,905
Surplus (–) / deficit (+) at 31 December 4,320 361 211 4,892
Effect of asset ceilings at 31 December 0 1 4 5
Net pension provisions at 31 December 4,320 362 215 4,897
Reported separately
Pension assets at 31 December 0 18 102 120
Provisions for pensions and similar obligations at 31 December 4,320 380 317 5,017
31 December 2012
Present value of defined benefit obligations at 31 December 8,608 4,116 2,051 14,775
Fair value of plan assets at 31 December – 4,129 –3,936 –1,693 – 9,758
Surplus (–) / deficit (+) at 31 December 4,479 180 358 5,017
Effect of asset ceilings at 31 December 0 1 0 1
Net pension provisions at 31 December 4,479 181 358 5,018
Reported separately
Pension assets at 31 December 0 120 78 198
Provisions for pensions and similar obligations at 31 December 4,479 301 436 5,216
€ m
Germany UK Other Total
2013
Present value of defined benefit obligations at 1 January 8,608 4,116 2,051 14,775
Current service cost, excluding employee contributions 111 34 41 186
Interest cost on defined benefit obligations 314 176 66 556
Actuarial gains (–) / losses (+) – changes in demographic assumptions –33 237 5 209
Actuarial gains (–) / losses (+) – changes in financial assumptions – 68 156 –103 –15
Actuarial gains (–) / losses (+) – experience adjustments 25 0 3 28
Past service cost – 58 –75 –3 –136
Settlement gains (–) / losses (+) 0 0 0 0
Employee contributions 10 11 15 36
Benefit payments – 471 –173 –77 –721
Settlement payments 0 0 –2 –2
Transfers 4 0 1 5
Acquisitions / divestitures –3 0 –1 –4
Currency translation effects 0 – 87 –33 –120
Present value of defined benefit obligations at 31 December 8,439 4,395 1,963 14,797
2012
Present value of defined benefit obligations at 1 January 7,474 3,951 1,835 13,260
Current service cost, excluding employee contributions 88 32 36 156
Interest cost on defined benefit obligations 357 191 74 622
Actuarial gains (–) / losses (+) – changes in demographic assumptions 0 –11 23 12
Actuarial gains (–) / losses (+) – changes in financial assumptions 1,106 173 170 1,449
Actuarial gains (–) / losses (+) – experience adjustments 51 –150 –25 –124
Past service cost 0 0 1 1
Settlement gains (–) / losses (+) 0 0 0 0
Employee contributions 9 13 15 37
Benefit payments – 480 –179 – 80 –739
Settlement payments 0 0 0 0
Transfers 1 0 3 4
Acquisitions / divestitures 2 0 0 2
Currency translation effects 0 96 –1 95
Present value of defined benefit obligations at 31 December 8,608 4,116 2,051 14,775
%
Germany UK Other Total
31 December 2013
Discount rate 3.75 4.50 3.48 3.94
Expected rate of future salary increase p. a. 2.50 4.50 2.12 3.06
Expected rate of future pension increase p. a. 2.00 2.96 1.06 2.20
31 December 2012
Discount rate 3.70 4.50 3.19 3.85
Expected rate of future salary increase p. a. 2.50 3.50 2.35 2.77
Expected rate of future pension increase p. a. 2.00 2.80 1.07 2.14
The discount rates for defined benefit obligations in the euro The key demographic assumptions made relate to life expec-
zone and the UK were each derived from a yield curve comprising tancy and mortality. For the German Group companies, they were
the yields of AA rated corporate bonds. Country-specific factors calculated using the Richttafeln 2005 G mortality tables published
were taken into account. For other countries, the discount rate was by Klaus Heubeck. Life expectancy for the British retirement plans
determined in a similar way, provided there was a deep market for was based on the mortality rates used for the last funding valuation.
AA or AAA-rated corporate bonds. By contrast, government bond These are based on plan-specific mortality analyses and include an
yields were used for countries without a deep market for such allowance for an expected increase in future life expectancy. Other
corporate bonds. countries used their own, current standard mortality tables.
For the annual pension increases in Germany, agreed rates in If one of the key financial assumptions were to change, the
particular must be taken into account in addition to the assump- present value of the defined benefit obligations would change as
tions shown. The effective weighted average therefore amounts to follows:
1.00 % (2012: 1.00 %).
31 December 2013
+ 1.00 –12.31 –16.14 –13.41 –13.59
Discount rate –1.00 15.63 19.58 17.20 17.01
These are effective weighted changes in the present value of The weighted average duration of the Group’s defined b enefit
the various defined benefit obligations, e. g., taking into account obligations at 31 December 2013 was 14.3 years in Germany (pre-
the largely fixed nature of pension increases for Germany. vious year: 14.1 years) and 18.5 years in the UK (previous year: 17.5
A one-year increase in life expectancy for a 65-year-old years). In the other countries it was 15.5 years (previous year: 16.2
beneficiary would increase the present value of the defined benefit years), and in total it was 15.7 years (previous year: 15.3 years).
obligations by 4.63 % in Germany and by 3.53 % in the UK. The cor- A total of 27.6 % (previous year: 27.2 %) of the present value
responding increase for other countries would be 2.40 %, for a total of the defined benefit obligations was attributable to future bene
increase of 4.01 %. ficiaries still working for the company, 16.2 % (previous year: 15.7 %)
When determining the sensitivity disclosures, the present to future beneficiaries no longer with the company and 56.2 % (pre-
values were calculated using the same methodology used to cal- vious year: 57.1 %) to pensioners.
culate the present values at the reporting date. The presentation
does not take into account interdependencies between the assump-
tions; rather, it supposes that the assumptions change in isolation.
This would be unusual in practice, since assumptions are often
correlated.
€ m
Germany UK Other Total
2013
Fair value of plan assets at 1 January 4,129 3,936 1,693 9,758
Interest income on plan assets 153 168 54 375
Return on plan assets excluding interest income 30 96 50 176
Other administration costs in accordance with IAS 19.130 0 –6 –3 –9
Employer contributions 143 83 37 263
Employee contributions 0 11 15 26
Benefit payments –337 –173 – 66 – 576
Settlement payments 0 0 –2 –2
Transfers 1 0 0 1
Acquisitions / divestitures 0 0 0 0
Currency translation effects 0 – 81 –26 –107
Fair value of plan assets at 31 December 4,119 4,034 1,752 9,905
2012
Fair value of plan assets at 1 January 2,106 3,714 1,549 7,369
Interest income on plan assets 101 180 63 344
Return on plan assets excluding interest income 9 29 99 137
Other administration costs in accordance with IAS 19.130 –9 –5 –3 –17
Employer contributions 2,122 93 43 2,258
Employee contributions 0 13 15 28
Benefit payments –196 –178 –71 – 445
Settlement payments 0 0 0 0
Transfers –4 0 3 –1
Acquisitions / divestitures 0 0 0 0
Currency translation effects 0 90 –5 85
Fair value of plan assets at 31 December 4,129 3,936 1,693 9,758
The fair value of the plan assets can be broken down as follows:
€ m
Germany UK Other Total
31 December 2013
Equities 622 872 632 2,126
Fixed income securities 1,227 2,488 658 4,373
Real estate 1,030 150 193 1,373
Alternatives 314 469 53 836
Insurances 582 0 92 674
Cash 205 14 33 252
Other 139 41 91 271
Fair value of plan assets 4,119 4,034 1,752 9,905
31 December 2012
Equities 162 828 614 1,604
Fixed income securities 368 2,395 642 3,405
Real estate 1,010 48 200 1,258
Alternatives 53 632 47 732
Insurances 187 0 95 282
Cash 2,347 19 30 2,396
Other 2 14 65 81
Fair value of plan assets 4,129 3,936 1,693 9,758
Quoted prices in an active market exist for around 80 % (pre- Asset-liability studies are performed at regular intervals
vious year: 85 %) of the total fair values of plan assets. Most of the in Germany, the UK and, among other places, the Netherlands,
remaining assets for which no such quoted market prices exist are Switzerland and the USA to examine the match between assets and
attributable as follows: 12 % (previous year: 11 %) to real estate, 6 % liabilities; the strategic allocation of plan assets is adjusted in line
(previous year: 3 %) to insurances, 1 % (previous year: 1 %) to alter- with this.
natives and 1 % (previous year: 0 %) to other. The majority of the
investments on the active markets are globally diversified, with 44.4 Effect of asset ceilings
country-specific focus areas. In the UK and Switzerland, the plan rules for one retirement
Real estate with a fair value of €1,016 million (previous year: plan in each case required a surplus to be capped to a certain extent
€995 million) is used by Deutsche Post AG itself. Otherwise, as in to reach the level of the present value of the benefits (asset ceiling).
the previous year, no plan assets were used by the Group and no Apart from this, asset ceilings had no effect as at 31 December 2013,
transferable own financial instruments were held as plan assets. revious year. See Table 44.1 for amounts and changes
as in the p
compared with the previous year.
€ m
Germany UK Other Total
2013
Net pension provisions at 1 January 4,479 181 358 5,018
Service cost1 53 –35 41 59
Net interest cost 161 8 12 181
Remeasurements –106 297 –141 50
Employer contributions –143 – 83 –37 –263
Employee contributions 10 0 0 10
Benefit payments –134 0 –11 –145
Settlement payments 0 0 0 0
Transfers 3 0 1 4
Acquisitions / divestitures –3 0 –1 –4
Currency translation effects 0 –6 –7 –13
Net pension provisions at 31 December 4,320 362 215 4,897
2012
Net pension provisions at 1 January 5,368 238 287 5,893
Service cost1 97 37 40 174
Net interest cost 256 11 11 278
Remeasurements 1,148 –17 68 1,199
Employer contributions –2,122 – 93 – 43 –2,258
Employee contributions 9 0 0 9
Benefit payments –284 –1 –9 –294
Settlement payments 0 0 0 0
Transfers 5 0 0 5
Acquisitions / divestitures 2 0 0 2
Currency translation effects 0 6 4 10
Net pension provisions at 31 December 4,479 181 358 5,018
1
Including other administration costs in accordance with IAS 19.130 from plan assets.
€ m
Germany UK Other Total
2013
Current service cost, excluding employee contributions 111 34 41 186
Past service cost – 58 –75 –3 –136
Settlement gains (–) / losses (+) 0 0 0 0
Other administration costs in accordance with IAS 19.130 0 6 3 9
Service cost1 53 –35 41 59
Interest cost on defined benefit obligations 314 176 66 556
Interest income on plan assets –153 –168 – 54 –375
Interest on the effect of asset ceilings 0 0 0 0
Net interest cost 161 8 12 181
Actuarial gains (–) / losses (+) – total –76 393 – 95 222
Return on plan assets excluding interest income –30 – 96 – 50 –176
Change in effect of asset ceilings excluding interest 0 0 4 4
Remeasurements –106 297 –141 50
Cost of defined benefit plans 108 270 – 88 290
2012
Current service cost, excluding employee contributions 88 32 36 156
Past service cost 0 0 1 1
Settlement gains (–) / losses (+) 0 0 0 0
Other administration costs in accordance with IAS 19.130 9 5 3 17
Service cost1 97 37 40 174
Interest cost on defined benefit obligations 357 191 74 622
Interest income on plan assets –101 –180 – 63 –344
Interest on the effect of asset ceilings 0 0 0 0
Net interest cost 256 11 11 278
Actuarial gains (–) / losses (+) – total 1,157 12 168 1,337
Return on plan assets excluding interest income –9 –29 – 99 –137
Change in effect of asset ceilings excluding interest 0 0 –1 –1
Remeasurements 1,148 –17 68 1,199
Cost of defined benefit plans 1,501 31 119 1,651
1
Including other administration costs in accordance with IAS 19.130 from plan assets.
€59 million of the cost of defined benefit plans (previous year: Inflation risk
€174 million) related to staff costs, €181 million (previous year: Pension obligations – especially final salary schemes or
€278 million) to net other finance costs and €50 million (previous schemes involving increases during the pension payment phase –
year: €1,199 million) to other comprehensive income. can be linked directly or indirectly to inflation. This risk to the
present value of the defined benefit obligations has been miti-
44.7 Risk gated in the case of Germany, for example, by switching to a plan
A number of risks that are material to the company and the involving fixed benefit amounts. In the case of the UK, the risk has
plans exist in relation to the defined benefit plans. Opportunities been mitigated by largely closing defined benefit plans, setting a
for risk mitigation are used in line with the specifics of the plans fixed rate of increase, capping increases or providing for lump sum
concerned. payments. Additionally, there is a p ositive correlation with interest.
Investment risk
The investment is in principle subject to a large number of
risks; in particular, it is exposed to the risk that market prices may
change. This is managed primarily by ensuring broad diversifica-
tion and using risk overlays.
Longevity risk
Longevity risk may arise in connection with the benefits
payable in the future due to a future increase in life expectancy.
This is mitigated in particular by using current standard mortal-
ity tables when calculating the present value of the defined benefit
obligations. The mortality tables used in Germany and the UK, for
example, include an allowance for expected future increases in life
expectancy.
45 Other provisions
€ m
1 Jan. 2012 2012 2013
Other non-current provisions 1 2,117 1,943 1,574
Other current provisions 2,134 1,663 1,745
Other provisions 1 4,251 3,606 3,319
1
Prior-year amount adjusted Note 4.
2012 1
2013 2012 2013 2012 2013
Other employee benefits 1 827 745 253 311 1,080 1,056
Restructuring provisions 383 109 298 425 681 534
Technical reserves (insurance) 397 402 194 203 591 605
Postage stamps 0 0 450 400 450 400
Tax provisions 0 0 127 116 127 116
Miscellaneous provisions 336 318 341 290 677 608
1,943 1,574 1,663 1,745 3,606 3,319
1
Prior-year amount adjusted Note 4.
The provision for other employee benefits primarily covers Of the tax provisions, €35 million (previous year: €28 mil-
workforce reduction expenses (severance payments, transitional lion) relates to VAT, €5 million (previous year: €6 million) to cus-
benefits, partial retirement, etc.), stock appreciation rights (SAR s) toms and duties, and €76 million (previous year: €93 million) to
and jubilee payments. other tax provisions.
The restructuring provisions comprise all expenses resulting
from the restructuring measures within the US express business as 45.2 Miscellaneous provisions
well as in other areas of the Group. These measures relate p rimarily
to settlement payment obligations assumed in the USA, rentals for € m
idle plant, termination benefits for e mployees (partial retirement 2012 2013
programmes, transitional benefits) and e xpenses from the closure Litigation costs 115 97
of terminals, for example. Risks from business activities 104 91
Technical reserves (insurance) mainly consist of outstand- Aircraft maintenance 43 51
Miscellaneous other provisions 415 369
ing loss reserves and IBNR reserves; further details can be found
Miscellaneous provisions 677 608
in Note 7.
The provision for postage stamps covers outstanding obli-
gations to customers for letter and parcel deliveries from postage Miscellaneous other provisions include a large number of
stamps sold but still unused by customers, and is based on studies individual items.
by market research companies. It is measured at the nominal value
of the stamps issued. 45.3 Maturity structure
The maturity structure of the provisions recognised in finan-
cial year 2013 is as follows:
2013
Other employee benefits 311 281 170 94 57 143 1,056
Restructuring provisions 425 20 8 8 10 63 534
Technical reserves (insurance) 203 163 84 52 36 67 605
Postage stamps 400 0 0 0 0 0 400
Tax provisions 116 0 0 0 0 0 116
Miscellaneous provisions 290 120 54 33 28 83 608
1,745 584 316 187 131 356 3,319
46 Financial liabilities
€ m Non-current Current Total
46.1 Bonds
The following table contains further details on the company’s
most significant bonds. The bonds issued by Deutsche Post
Finance B.V. are fully guaranteed by Deutsche Post AG.
Major bonds
2012 2013
Deutsche Post DHL placed two conventional bonds amount- 46.2 Amounts due to banks
ing to €1 billion with national and international investors. The issue
date was 9 October 2013. The capital raised is to be used to repay € m
a ten-year bond maturing in January 2014. The first issue in the 2012 2013
amount of €500 million has a maturity of five years and an a nnual Amounts due to banks 137 199
coupon of 1.5 %. The second €500 million issue has a maturity of
ten years and an annual coupon of 2.75 %.
The €1 billion convertible bond issued on 6 December 2012 The liabilities mainly comprise current overdraft facilities due
has a conversion right, which allows holders to convert the bond to various banks.
into a predetermined number of Deutsche Post AG shares if
Deutsche Post AG’s share price more than temporarily exceeds 130 %
of the conversion price applicable at that time. The conversion right
may be exercised between 16 January 2013 and 21 November 2019.
On issue, the conversion price was set at €20.74. In addition,
Deutsche Post AG was granted a call option allowing it to repay the
bond early at face value plus accrued interest if Deutsche Post AG’s
share price more than temporarily exceeds 130 % of the conversion
price applicable at that time. The option can be exercised between
6 December 2017 and 16 November 2019. For contractual reasons,
the convertible bond was split into a debt component and an equity
component. The equity instrument in the amount of €74 million
is reported under capital reserves. The value of the debt compo-
nent on the issue date calculated in accordance with IFRS 32.31
amounted to €920 million, including transaction costs and the call
option granted. Transaction costs of €0.5 million and €5.8 million
are included in the aforementioned amounts. In subsequent years,
interest will be added to the carrying amount of the bond, up to
the issue amount, using the effective interest method (unwinding
of discount) and recognised in profit or loss.
Interest rate
Leasing partner (%) End of term Asset 2012 2013
Deutsche Post Immobilien GmbH, Germany Various leasing partners 4.75 2023 / 2028 Real estate 0 114
Raiffeisen Impuls Immobilien
DHL Express (Austria) GmbH, Austria GmbH 3.62 2019 Real estate 11 11
DHL Logistics GmbH, Germany Fitia GmbH 5.175 2016 Real estate 9 8
Deutsche Post AG, Germany T-Systems International GmbH 6.5 2015 IT equipment 7 3
Lorac Investment Management
Deutsche Post Immobilien GmbH, Germany Sarl 6.0 2016 Real estate 6 4
Wachovia Financial Services; Sorting system
DHL Express (US) Inc., USA Wells Fargo 6.74 2019 / 2022 software 34 0
Warehouse,
office
SCM Supply Chain Management Inc., Canada Bank of Nova Scotia Variable 2012 / 2013 equipment 12 0
The change in finance lease liabilities is attributable to the 46.4 Financial liabilities at fair value through profit or loss
early termination of a lease, as well as to leases entered into between The amounts reported under this item relate to the negative
Deutsche Post Immobilien GmbH and various contract partners fair values of derivative financial instruments.
for newly leased delivery bases in Germany.
The leased assets are recognised in property, plant and € m
equipment at carrying amounts of €330 million (previous year: 2012 2013
€280 million). The difference between the carrying amounts of Financial liabilities at fair value through profit
or loss 117 40
the assets and the liabilities results from longer useful lives of the
assets compared with a shorter repayment period for the lease
instalments and unscheduled repayments of lease obligations. The
notional amount of the minimum lease payments totals €255 mil- 46.5 Other financial liabilities
lion (previous year: €165 million).
€ m
Maturity structure 2012 2013
€ m Put option related to the acquisition of the remaining
Present value Minimum lease payments
interest in Giorgio-Gori Group 0 62
(finance lease liabilities) (notional amount)
Loan notes related to the acquisition of TAG Group 57 55
2012 2013 2012 2013
Loan notes related to the early termination
Less than 1 year 26 19 33 24 of a finance lease 0 18
More than 1 year to 5 years 56 101 62 116 Miscellaneous financial liabilities 154 182
More than 5 years 67 93 70 115 Other financial liabilities 211 317
Total 149 213 165 255
47 Other liabilities
€ m € m
2012 2013 2012 2013
Tax liabilities 884 967 Less than 1 year 4,004 3,981
Incentive bonuses 577 560 More than 1 year to 2 years 46 41
Wages, salaries, severance payments 287 335 More than 2 years to 3 years 28 7
Compensated absences 375 298 More than 3 years to 4 years 10 7
Deferred income, of which non-current: 61 More than 4 years to 5 years 7 28
(previous year: 71) 351 295 More than 5 years 185 144
Payables to employees and members of executive 4,280 4,208
bodies 177 172
Social security liabilities 143 162
Debtors with credit balances 150 148 There is no significant difference between the carrying
Liabilities from the sale of residential building loans, amounts and the fair values of the other liabilities due to their short
of which non-current: 140 (previous year: 149) 153 144
maturities or market interest rates. There is no significant interest
Overtime claims 110 105
COD liabilities 70 51
rate risk because most of these instruments bear floating rates of
Other compensated absences 49 40 interest at market rates.
Liabilities from cheques issued 35 37
Accrued rentals 34 32 48 Trade payables
Insurance liabilities 36 26 Trade payables also include liabilities to Group companies in
Accrued insurance premiums for damages the amount of €46 million (previous year: €42 million).
and similar liabilities 12 16
Liabilities from loss compensation 15 12
€ m
Miscellaneous other liabilities,
of which non-current: 26 (previous year: 56) 822 808 2012 2013
Of the tax liabilities, €544 million (previous year: €502 mil- Most of the trade payables have a maturity of less than one
lion) relates to VAT, €269 million (previous year: €227 million) to year. The reported carrying amount of trade payables corresponds
customs and duties, and €154 million (previous year: €155 million) to their fair value.
to other tax liabilities.
The liabilities from the sale of residential building loans r elate
to obligations of Deutsche Post AG to pay interest subsidies to bor-
rowers to offset the deterioration in borrowing terms in conjunc-
tion with the assignment of receivables in previous years, as well as
pass-through obligations from repayments of principal and inter-
est for residential building loans sold.
Miscellaneous other liabilities include a large number of
individual items.
CASH FLOW DISCLOSURES The higher working capital led to a net cash outflow of
€84 million. In the previous year, the change in this item resulted in
49 Cash flow disclosures an outflow of €422 million. The change in liabilities and other items
The cash flow statement is prepared in accordance with IAS 7 in particular made a significant contribution to this development.
(Statement of Cash Flows) and discloses the cash flows in order to
present the source and application of cash and cash equivalents. Non-cash income and expense
It distinguishes between cash flows from operating, investing and € m
financing activities. Cash and cash equivalents are composed of 2012 2013
cash, cheques and bank balances with a maturity of not more than Expense from remeasurement of assets 94 122
three months, and correspond to the cash and cash equivalents Income from remeasurement of liabilities –203 –114
reported on the balance sheet. The effects of currency translation Income from disposal of assets –2 –11
Staff costs relating to Share Matching Scheme 19 20
and changes in the consolidated group are adjusted when calculat-
Miscellaneous –5 –1
ing cash and cash equivalents.
Non-cash income and expense – 97 16
€ m
2012 2013
Non-current assets 5 2
Current assets (excluding cash and cash equivalents) 19 8
Non-current provisions and liabilities 2 0
Current provisions and liabilities 8 7
The following table shows the calculation of free cash flow: 49.3 Net cash used in financing activities
Financing activities led to a cash outflow of €110 million in
Calculation of free cash flow the year under review, compared with a cash inflow of €1,199 mil-
€ m lion in the previous year.
2012 2013 Two bonds with maturities of five and ten years contributed
Net cash used in / from operating activities –203 2,994 €495 million each to the €1,010 million in proceeds from the issu-
Sale of property, plant and equipment ance of non-current financial liabilities. In the previous year, the
and intangible assets 225 177
issue of conventional corporate bonds and a convertible bond in
Acquisition of property, plant and equipment
and intangible assets –1,639 –1,389 particular had contributed to proceeds of €3,176 million. In addi-
Cash outflow arising from change in property, tion, €733 million was used to repay non-current financial liabilites
plant and equipment and intangible assets –1,414 –1,212 in the previous year.
Disposals of subsidiaries and other business units 39 32 At €846 million, the dividend payment to the shareholders of
Acquisition of subsidiaries and other business units – 57 –37 Deutsche Post AG remained at the prior-year level and was again
Cash outflow arising from acquisitions /
the largest payment in financing activities. However, interest pay-
divestitures –18 –5
Interest received 46 42
ments were down €130 million year-on-year, at €166 million, due
Interest paid –296 –166 to the interest payment related to the additional VAT payment in
Net interest paid –250 –124 the previous year.
Free cash flow –1,885 1,653 Proceeds from issuing shares or other equity instruments
declined by €70 million to €4 million. The prior-year figure in-
cluded the equity component of the convertible bond.
Free cash flow is considered to be an indicator of how much
cash is available to the company for dividend payments or the 49.4 Cash and cash equivalents
repayment of debt. The cash inflows and outflows described above produced
Free cash flow improved from €–1,885 million in the previous cash and cash equivalents of €3,417 million; Note 36. This repre-
year to €1,653 million in the year under review. This is p rimarily sents a year-on-year increase of €1,017 million.
attributable to the improvement in operating cash flow, which
had been exceptionally and significantly reduced in the previous
year by the funding of pension obligations and the additional VAT
payment.
At 31 December 2013
Non-current financial liabilities 82 156 233 849 662 3,379
Other non-current liabilities 0 11 3 3 2 130
Non-current liabilities 82 167 236 852 664 3,509
Current financial liabilities 1,299 0 0 0 0 0
Trade payables 6,392 0 0 0 0 0
Other current liabilities 346 0 0 0 0 0
Current liabilities 8,037 0 0 0 0 0
At 31 December 2012
Non-current financial liabilities 106 1,031 61 61 811 2,758
Other non-current liabilities 0 4 4 4 3 137
Non-current liabilities 106 1,035 65 65 814 2,895
Current financial liabilities 297 0 0 0 0 0
Trade payables 5,991 0 0 0 0 0
Other current liabilities 462 0 0 0 0 0
Current liabilities 6,750 0 0 0 0 0
On 9 October 2013, Deutsche Post AG placed two fixed- be used to repay the Deutsche Post Finance B.V. bond amounting
coupon bonds worth a total of €1 billion on the capital market. The to €926 million falling due in January 2014. Until then, the funds
bonds have a principal amount of €500 million each and matur- have been invested in short-term money market investments. The
ities of five and ten years, respectively. The issue proceeds are to bonds are reported in non-current financial liabilities.
At 31 December 2013
Net settlement
Cash inflows 23 5 0 0 0 0
Net settlement
Cash outflows –4 –1 0 0 0 0
At 31 December 2012
Net settlement
Cash inflows 13 2 0 0 0 0
Net settlement
Cash outflows –22 –3 0 0 0 0
Derivative financial instruments entail both rights and obli- impact as far as possible, all significant balance sheet currency
gations. The contractual arrangement defines whether these rights risks within the Group are centralised at Deutsche Post AG through
and obligations can be offset against each other and therefore result the in-house bank function. The centralised risks are aggregated
in a net settlement, or whether both parties to the contract will by Corporate Treasury to calculate a net position per currency
have to perform their obligations in full (gross settlement). and hedged externally based on value-at-risk limits. The currency-
related value at risk (95 % / one-month holding period) for the port-
Currency risk and currency management folio concerned totalled €4 million (previous year: €3 million) at
The international business activities of Deutsche Post DHL the reporting date; the limit was a maximum of €5 million.
expose it to currency risks from recognised or planned future The notional amount of the currency forwards and currency
transactions. swaps used to manage balance sheet currency risks amounted to
Balance sheet currency risks arise from the measurement and €2,409 million at the reporting date (previous year: €4,370 mil-
settlement of items in foreign currencies that have been recognised lion); the fair value was €34 million (previous year: €42 million).
if the exchange rate on the measurement or settlement date dif- For simplification purposes, fair value hedge accounting was not
fers from the rate on recognition. The resulting foreign exchange applied to the derivatives used, which are reported as trading
differences directly impact profit or loss. In order to mitigate this derivatives instead.
Currency risks arise from planned foreign currency trans- concerned was €4 million at the reporting date (previous year:
actions if the future foreign currency transactions are settled at €3 million). In addition, hypothetical changes in exchange rates
exchange rates that differ from the rates originally planned or affect equity and the fair values of those derivatives used to hedge
calculated. These currency risks are also captured centrally in unrecognised firm commitments and highly probable forecast cur-
Corporate Treasury and managed on a rolling 24-month basis as rency transactions, which are designated as cash flow hedges. The
part of a hedging programme. The goal is to hedge an average of foreign currency value at risk of this risk position was €30 million as
up to 50 % of all significant currency risks over a 24-month period. at 31 December 2013 (previous year: €32 million). The total foreign
This makes it possible to plan reliably and reduce fluctuations in currency value at risk was €29 million at the reporting date (previ-
earnings caused by currency movements. At the reporting date, ous year: €35 million). The total amount is lower than the sum of
an average of approximately 35 % of the foreign currency risk of the individual amounts given above, owing to interdependencies.
the currencies concerned was hedged for the next 24 months. The
relevant hedging transactions are recognised using cash flow hedge Interest rate risk and interest rate management
accounting; Note 50.3, cash flow hedges. The fair value of interest rate hedging instruments was calcu-
In total, currency forwards and currency swaps with a n otional lated on the basis of discounted expected future cash flows using
amount of €4,280 million (previous year: €5,976 million) were Corporate Treasury’s risk management system.
outstanding at the balance sheet date. The corresponding fair As at 31 December 2013, the Group had entered into interest
value was €98 million (previous year: €51 million). At the end of rate swaps with a notional volume of €1,126 million (previous year:
the year there were no currency options, as in the previous year. €326 million). The fair value of this interest rate swap position was
The Group also held cross-currency swaps with a notional amount €6 million (previous year: €23 million). As in the previous year,
of €163 million (previous year: €163 million) and a fair value of there were no interest rate options at the reporting date.
€14 million (previous year €2 million) to hedge foreign currency The Group placed further fixed-coupon bonds on the cap
financing. ital market in financial year 2013. At the same time, the remaining
Currency risks resulting from translating assets and liabilities maturity of the bond falling due in January 2014 dropped to less
of foreign operations into the Group’s currency (translation risk) than one year and some of the original fixed-coupon bonds were
were not hedged as at 31 December 2013. swapped for variable short-term interest rates. As a result, the share
Of the unrealised gains or losses from currency derivatives of instruments with short-term interest lock-ins increased sharply
recognised in equity as at 31 December 2013 in accordance with year-on-year. Taking into account existing interest rate hedging
IAS 39, €69 million (previous year: €3 million) is expected to be instruments, the proportion of financial liabilities with short-term
recognised in income in the course of 2014. interest lock-ins, Note 46, amounts to around 36 % (previous
IFRS 7 requires the disclosure of quantitative risk data show- year: 8 %) as at the reporting date. However, the effect of poten-
ing how profit or loss and equity are affected by changes in exchange tial interest rate changes on the Group’s financial position remains
rates at the reporting date. The impact of these changes in exchange insignificant.
rates on the portfolio of foreign currency financial instruments is The quantitative risk data relating to interest rate risk required
assessed by means of a value-at-risk calculation (95 % confidence / by IFRS 7 is presented in the form of a sensitivity analysis. This
one-month holding period). It is assumed that the portfolio as method determines the effects of hypothetical changes in market
at the reporting date is representative for the full year. Effects of interest rates on interest income, interest expense and equity as at
hypothetical changes in exchange rates on translation risk do not the reporting date. The following assumptions are used as a basis
fall within the scope of IFRS 7. The following assumptions are used for the sensitivity analysis:
as a basis for the sensitivity analysis: Primary variable-rate financial instruments are subject to
Primary financial instruments in foreign currencies used by interest rate risk and must therefore be included in the s ensitivity
Group companies were hedged by Deutsche Post AG’s in-house analysis. Primary variable-rate financial instruments that were
bank, with Deutsche Post AG setting and guaranteeing monthly transformed into fixed-income financial instruments using cash
exchange rates. Exchange rate-related changes therefore have no flow hedges are not included. Changes in market interest rates for
effect on the profit or loss and equity of the Group companies. derivative financial instruments used as a cash flow hedge affect
Where, in individual cases, Group companies are not permitted to equity by changing fair values and must therefore be included in
participate in in-house banking for legal reasons, their currency the sensitivity analysis. Fixed-income financial instruments meas-
risks from primary financial instruments are fully hedged locally ured at amortised cost are not subject to interest rate risk.
through the use of derivatives. They therefore have no impact on
the Group’s risk position.
Hypothetical changes in exchange rates have an effect on
the fair values of Deutsche Post AG’s external derivatives that is
reported in profit or loss; they also affect the foreign currency
gains and losses from remeasurement at the closing date of the
in-house bank balances, balances from external bank accounts as
well as internal and external loans extended by Deutsche Post AG.
The foreign currency value at risk of the foreign currency items
Designated fair value hedges of interest rate risk are not Changes in commodity prices would affect the fair value of
i ncluded in the analysis because the interest-related changes in fair the derivatives used to hedge highly probable forecast c ommodity
value of the hedged item and the hedging transaction almost fully purchases (cash flow hedges) and the hedging reserve in equity.
offset each other in profit or loss for the period. Only the variable A 10 % increase in the commodity prices underlying the derivatives
portion of the hedging instrument affects net financial income / net as at the balance sheet date would have increased fair values and
finance costs and must be included in the sensitivity analysis. equity by €5 million (previous year: €0 million). A corresponding
If the market interest rate level as at 31 December 2013 had decline in commodity prices would have had the opposite effect.
been 100 basis points higher, net finance costs would have increased In the interests of simplicity, some of the commodity price
by €6 million (previous year: decreased by €2 million). A market hedges were not recognised using cash flow hedge accounting. For
interest rate level 100 basis points lower would have had the op the derivatives in question, commodity price changes would affect
posite effect. A change in the market interest rate level by 100 basis both the fair values of the derivatives and the income statement. As
points would affect the fair values of the interest rate derivatives in the previous year, if the underlying commodity prices had been
recognised in equity. As in the previous year, a rise in interest rates 10 % higher at the reporting date, this would have increased the
in this financial year would not have increased equity, nor would a fair values in question and, consequently, operating profit by less
reduction have reduced equity. than €1 million. A corresponding decline in the commodity prices
would have also reduced the fair values and operating profit by less
Market risk than €1 million.
As in the previous year, most of the risks arising from com-
modity price fluctuations, in particular fluctuating prices for Credit risk
kerosene and marine diesel fuels, were passed on to customers via The credit risk incurred by the Group is the risk that counter-
operating measures. However, the impact of the related fuel sur- parties fail to meet their obligations arising from operating activ
charges is delayed by one to two months, so that earnings may be ities and from financial transactions. To minimise credit risk from
affected temporarily if there are significant short-term fuel price financial transactions, the Group only enters into transactions with
variations. prime-rated counterparties. The Group’s heterogeneous customer
In addition, a small number of commodity swaps for diesel structure means that there is no risk concentration. Each counter
and marine diesel fuel were used to control residual risks. The party is assigned an individual limit, the utilisation of which is
notional amount of these commodity swaps was €56 million (pre- regularly monitored. A test is performed at the balance sheet dates
vious year: €8 million) with a fair value of €0 million (previous to establish whether an impairment loss needs to be charged on
year: €0 million). the positive fair values due to the individual counterparties’ credit
IFRS 7 requires the disclosure of a sensitivity analysis, pre- quality. This was not the case for any of the counterparties as at
senting the effects of hypothetical commodity price changes on 31 December 2013.
profit or loss and equity. Default risks are continuously monitored in the o perating
business. The aggregate carrying amounts of financial assets
represent the maximum default risk. Trade receivables amounting
to €7,040 million (previous year: €6,959 million) are due within
one year. The following table gives an overview of receivables that
are past due:
At 31 December 2013
Trade receivables 7,250 5,154 749 641 270 93 42 36 17
At 31 December 2012
Trade receivables 7,175 5,038 764 647 258 103 44 26 23
€ m
2012 2013
Gross receivables
At 1 January 7,163 7,175
Changes 12 75
At 31 December 7,175 7,250
Valuation allowances
At 1 January –229 –216
Changes 13 6
At 31 December –216 –210
Carrying amount at 31 December 6,959 7,040
50.2 Collateral
€545 million (previous year: €549 million) of collateral is
recognised in non-current financial assets as at the balance sheet
date. Of this amount, €318 million relates to the restricted cash
transferred to a blocked account with Commerzbank AG for any
payments that may be required due to the EU state aid proceed-
ings; Note 3, 2012 Annual Report. €55 million is attributable to
collateral in the context of an M & A transaction and €102 million
relates primarily to liabilities in conjunction with the settlement of
Deutsche Post AG’s residential building loans. €64 million relates
to sureties paid.
Collateral of €41 million is recognised in current financial
assets (previous year: €49 million). The majority of this concerns
collateral deposited for QTE leases.
Fair
Fair value Less Less
No- No- value of Total than Up Up Up Up than Up Up Up Up
tional Fair tional of liabil fair 1 to 2 to 3 to 4 to 5 > 5 1 to 2 to 3 to 4 to 5 > 5
amount value amount assets ities value year years years years years years year years years years years years
Currency transactions
Currency forwards 2,918 4 2,206 94 –26 68 78 16 0 0 0 0 –21 –5 0 0 0 0
of which cash flow
hedges 1,442 9 1,825 89 –25 64 73 16 0 0 0 0 –20 –5 0 0 0 0
of which net investment
hedges 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
of which held for trading 1,476 –5 381 5 –1 4 5 0 0 0 0 0 –1 0 0 0 0 0
Currency options 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
of which cash flow
hedges 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Currency swaps 3,058 47 2,074 36 –6 30 36 0 0 0 0 0 –6 0 0 0 0 0
of which cash flow
hedges 164 0 46 1 –1 0 1 0 0 0 0 0 –1 0 0 0 0 0
of which held for trading 2,894 47 2,028 35 –5 30 35 0 0 0 0 0 –5 0 0 0 0 0
Cross-currency swaps 163 2 163 14 0 14 14 0 0 0 0 0 0 0 0 0 0 0
of which cash flow
hedges 163 2 163 14 0 14 14 0 0 0 0 0 0 0 0 0 0 0
of which fair value
hedges 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
of which held for trading 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
6,139 53 4,443 144 –32 112 128 16 0 0 0 0 –27 –5 0 0 0 0
Commodity price
transactions
Commodity price swaps 8 0 56 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
of which cash flow
hedges 3 0 52 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
of which held for trading 5 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Financial assets and liabilities at fair value through profit or loss Available-for-sale financial assets
ASSETS
Non-current financial assets 1,124
at cost 858 0 0 97
at fair value 266 0 90 160
Trade receivables 7,040
at cost 7,040 0 0 0
Other current assets 2,221
at cost 955 0 0 0
outside IFRS 7 1,266 0 0 0
Current financial assets 821
at cost 70 0 0 0
at fair value 751 40 0 611
Cash and cash equivalents 3,417 0 0 0
Total ASSETS 14,623 40 90 868
729 0 0 32 846
0 0 16 0 266
7,040 0 0 0 7,040
955 0 0 0 955
0 0 0 0 0
63 0 0 7 70
0 0 100 0 751
3,417 0 0 0 3,417
12,204 0 116 39 –
147 0 0 0 147
0 0 0 0 0
1,280 0 0 19 1,302
0 0 21 0 29
6,392 0 0 0 6,392
346 0 0 0 346
0 0 0 0 0
12,572 0 32 213 –
Financial assets and liabilities at fair value through profit or loss Available-for-sale financial assets
ASSETS
Non-current financial assets 1,039
at cost 866 0 0 104
at fair value 173 0 79 58
Trade receivables 6,959
at cost 6,959 0 0 0
Other current assets 2,153
at cost 893 0 0 0
outside IFRS 7 1,260 0 0 0
Current financial assets 252
at cost 119 0 0 0
at fair value 133 85 0 24
Cash and cash equivalents 2,400 0 0 0
Total ASSETS 12,803 85 79 186
737 0 0 25 866
0 0 36 0 173
6,959 0 0 0 6,959
893 0 0 0 893
0 0 0 0 0
77 0 0 42 119
0 0 24 0 133
2,400 0 0 0 2,400
11,066 0 60 67 –
149 0 0 0 149
0 0 0 0 0
268 0 0 26 294
0 0 21 0 109
5,991 0 0 0 5,991
398 0 0 0 398
0 0 0 0 0
11,088 0 26 149 –
If there is an active market for a financial instrument (e. g., Available-for-sale financial assets include shares in partner-
stock exchange), the fair value is determined by reference to the ships and corporations in the amount of €97 million (previous
market or quoted exchange price at the balance sheet date. If no year: €104 million). There is no active market for these instruments.
fair value is available in an active market, the quoted prices in an As no future cash flows can be reliably determined, the fair values
active market for similar instruments or recognised valuation tech- cannot be determined using valuation techniques. The shares of
niques are used to determine fair value. The valuation techniques these entities are recognised at cost. There are no plans to sell or
used incorporate the key factors determining the fair value of the derecognise significant shares of the available-for-sale financial
financial instruments using valuation parameters that are derived assets recognised as at 31 December 2013 in the near future. As in
from the market conditions as at the balance sheet date. Counter the previous year, no significant shares measured at cost were sold
party risk is analysed on the basis of the current credit default in the financial year. Available-for-sale financial assets measured at
swaps signed by the counterparties. The fair values of other non- fair value relate to equity and debt instruments.
current receivables and held-to-maturity financial investments Financial assets at fair value through profit or loss include
with remaining maturities of more than one year correspond to securities to which the fair value option was applied, in order to
the present values of the payments related to the assets, taking into avoid accounting inconsistencies. There is an active market for
account current interest rate parameters. these assets, which are recognised at fair value.
Cash and cash equivalents, trade receivables and other receiv- The following table presents the classes of financial instru-
ables have predominantly short remaining maturities. As a result, ments recognised at fair value and not recognised at fair value by
their carrying amounts as at the reporting date are approximately the level in the fair value hierarchy to which they are assigned:
equivalent to their fair values. Trade payables and other liabilities
generally have short remaining maturities; the recognised amounts
approximately represent their fair values.
The fair values of currency forwards were measured on the active market. Any currency options used are measured using
asis of discounted expected future cash flows, taking forward rates
b the Black-Scholes option pricing model. All significant inputs
on the foreign exchange market into account. The currency options used to measure derivatives are observable on the market. Level 3
were measured using the Black-Scholes option pricing model. mainly comprises the fair values of equity investments and options
Level 2 includes commodity, interest rate and currency entered into in connection with M & A transactions. These equity
derivatives. The fair values of the derivatives (currency forwards, investments and options are measured using recognised valuation
interest rate and commodity swaps) are measured on the basis of models, taking plausible assumptions into account; measurement
discounted expected future cash flows, taking into account for- depends largely on financial ratios.
ward rates for currencies, interest rates and commodities (mar- No financial instruments were transferred between levels in
ket approach). For this purpose, price quotations observable on financial year 2012. The table shows the effect on net gains and
the market (exchange rates, interest rates and commodity prices) losses of the financial instruments categorised within level 3 as at
are imported from information platforms customary in the mar- the reporting date:
ket into the treasury management system. The price quotations
reflect actual transactions involving similar instruments on an
Assets
Equity instruments 28 0 41 1 24 0 93
Liabilities
Debt instruments 1 –1 2 0 0 0 0
Derivatives
Equity derivatives 48 – 43 2 0 0 –3 2
1
Unrealised gains were recognised in the IAS 39 revaluation reserve.
2
Fair value losses were recognised in other finance costs.
The net gains and losses on financial instruments classified The net gains and losses mainly include the effects of the
in accordance with the individual IAS 39 measurement categories fair value measurement, impairment and disposals (disposal
are as follows: gains / losses) of financial instruments. In financial year 2013, an
option entered into in the context of an M & A transaction was
Net gains and losses by measurement category derecognised, resulting in an impact on profit or loss. The amount
€ m reported for the trading category in the previous year related to the
2012 2013 measurement of the forward and the options entered into to trans-
Loans and receivables –111 –107 fer the remaining shares in Deutsche Postbank AG. Dividends and
Financial assets and liabilities at fair value interest are not taken into account for the financial instruments
through profit or loss
measured at fair value through profit or loss. Disclosures on net
Trading –337 41
gains or losses on available-for-sale financial assets can be found
Fair value option 0 0
Other financial liabilities 2 3
in Note 40.2. Income and expenses from interest and commis-
sion agreements of the financial instruments not measured at fair
value through profit or loss are explained in the income statement
disclosures.
Offsetting – Liabilities
€ m Financial assets and liabilities not set off
in the balance sheet
Gross amount
of financial Net amount
liabilities of financial Financial assets subject to
recognised Gross amount liabilities set a legally enforceable netting
at the of financial off in the agreement that do not meet Collateral
reporting date assets set off balance sheet offsetting criteria provided Total
Financial assets and liabilities are set off on the basis of net- 52 Other financial obligations
ting agreements (master netting arrangements) only if an enforce- In addition to provisions, liabilities and contingent liabilities,
able right of set-off exists and settlement on a net basis is intended there are other financial obligations amounting to €6,129 million
as at the reporting date. (previous year: €6,325 million) from non-cancellable operating
If the right of set-off is not enforceable in the normal course leases as defined by IAS 17.
of business, the financial assets and liabilities are recognised in the The Group’s future non-cancellable payment obligations
balance sheet at their gross amounts as at the reporting date. The under leases are attributable to the following asset classes:
master netting arrangement creates a conditional right of set-off
that can only be enforced by taking legal action. Lease obligations
To hedge cash flow and fair value risks, Deutsche Post AG € m
enters into financial derivative transactions with a large number 2012 2013
of financial services institutions. These contracts are subject to Land and buildings 5,100 4,966
a standardised master agreement for financial derivative trans Aircraft 647 524
actions. This agreement provides for a conditional right of set-off, Transport equipment 450 512
Technical equipment and machinery 65 67
resulting in the recognition of the gross amount of the financial
Other equipment, operating and office equipment 48 47
derivative transactions at the reporting date. The conditional right
IT equipment 15 13
of set-off is presented in the table.
Lease obligations 6,325 6,129
Settlement processes arising from services related to postal
deliveries are subject to the Universal Postal Convention and the
REIMS Agreement. These agreements, particularly the settlement The decrease in lease obligations by €196 million to
conditions, are binding on all public postal operators for the spec- €6,129 million is a consequence of the reduction in the remaining
ified contractual arrangements. Imports and exports between terms of legacy agreements, especially for real estate and aircraft
two parties to the agreement during a calendar year are offset in which, in the main, are not matched by the same volume of new
an annual statement of account and presented on a net basis in leases.
the final annual statement. The final statement is prepared by the
creditor. Receivables and payables covered by the Universal Postal Maturity structure of minimum lease payments
Convention and the REIMS Agreement are presented on a net basis € m
at the reporting date. The tables above show the receivables and 2012 2013
payables before and after offsetting. Less than 1 year 1,504 1,465
More than 1 year to 2 years 1,107 1,109
54 Share-based payment the financial year (investment shares). After a four-year lock-up
Assumptions regarding the price of Deutsche Post AG’s period during which the executive must be employed by the Group,
shares and assumptions regarding employee fluctuation are taken they again receive the same number of Deutsche Post AG shares
into account when measuring the value of share-based payments (matching shares). Assumptions are made regarding the conver-
for executives. All assumptions are reviewed on a quarterly basis. sion behaviour of executives with respect to their relevant bonus
The staff costs are recognised pro rata in profit or loss to reflect portion. Share-based payment arrangements are entered into each
the services rendered as consideration during the vesting period year, with 1 January of the respective year and 1 April of the follow-
(lock-up period). ing year being the grant dates for each year’s tranche. Whereas in-
centive shares and matching shares are classified as equity-settled
Share-based payment for executives (Share Matching Scheme) share-based payments, investment shares are compound finan-
Under the share-based payment system for executives (Share cial instruments and the liability and equity components must be
Matching Scheme), certain executives receive part of their vari- measured separately. However, in accordance with IFRS 2.37, only
able remuneration for the financial year in the form of shares of the debt component is measured due to the provisions of the Share
Deutsche Post AG in the following year (incentive shares); all Group Matching Scheme. The investment shares are therefore treated as
executives can specify an increased equity component individually cash-settled share-based payments.
by converting a further portion of their variable remuneration for
In the consolidated financial statements as at 31 Decem- begins on the issue date, the SAR s granted can be fully or partly
ber 2013, €35 million (previous year: €34 million) was recognised exercised within a period of two years provided an absolute or
in equity for the granting of variable remuneration components; relative performance target is achieved at the end of the waiting
Note 39. period. Any SAR s not exercised during this two-year period will
expire. To determine how many – if any – of the granted SAR s can
Long-Term Incentive Plan (2006 LTIP) for members be e xercised, the average share price or the average index is com-
of the Board of Management pared for the reference period and the performance period. The
Since 1 July 2006, the members of the Board of Management reference period comprises the last 20 consecutive trading days
receive stock appreciation rights (SARs) under the 2006 LTIP. Each before the issue date. The performance period is the last 60 trading
SAR under the 2006 LTIP entitles the holder to receive a cash settle days b efore the end of the waiting period. The average (closing)
ment equal to the difference between the average closing price of price is calculated as the average closing price of Deutsche Post
Deutsche Post shares during the last five trading days before the shares in Deutsche Börse AG’s Xetra trading system.
exercise date and the issue price of the SAR.
The members of the Board of Management each invest 10 %
of their fixed annual remuneration (annual base salary) as a per-
sonal financial investment every year. The number of SAR s issued
to the members of the Board of Management is determined by
the Supervisory Board. Following a four-year waiting period that
The absolute performance target is met if the closing price of between the respective price of Deutsche Post shares and the fixed
Deutsche Post shares is at least 10, 15, 20 or 25 % above the issue issue price if demanding performance targets are met (see disclo-
price. The relative performance target is tied to the performance sures on the 2006 LTIP for members of the Board of Management).
of the shares in relation to the STOXX Europe 600 Index (SXXP, All SAR s granted under the 2006 and 2007 tranches expired at
ISIN EU0009658202). It is met if the share price equals the index the end of the respective waiting periods, since the related perfor-
performance or if it outperforms the index by at least 10 %. mance targets were not met. After the expiry of the waiting pe-
A maximum of four out of every six SAR s can be “earned” via riod for the 2008 tranche on 30 June 2011, two-sixths of the SAR s
the absolute performance target, and a maximum of two via the granted became exercisable. They were eligible to be exercised
relative performance target. If neither an absolute nor a relative shortly b
efore the end of the exercise period, as the share price per-
performance target is met by the end of the waiting period, the formed well and exceeded the issue price of €18.40. The exercise
SAR s attributable to the related tranche will expire without replace- period for these SAR s terminated on 30 June 2013. The waiting pe-
ment or compensation. riod for the 2009 tranche also ended on 30 June 2013. Due to the
strong share price performance since the SAR s were i ssued in 2009,
SAR Plan for executives most of these SAR s were exercised in 2013.
Since July 2006, selected executives have received annual More details on the 2006 LTIP / SAR Plan tranches are shown
tranches of SAR s under the LTIP. This allows them to receive a cash in the following table:
payment within a defined period in the amount of the difference
The fair value of the SAR Plan and the 2006 LTIP was deter- The federal government is a customer of Deutsche Post AG
mined using a stochastic simulation model. As a result, an expense and as such uses the company’s services. Deutsche Post AG has
of €202 million was recognised for financial year 2013 (previous direct business relationships with the individual public authorities
year: €143 million). and other government agencies as independent individual custom-
See Note 55.2 for further disclosures on share-based pay- ers. The services provided for these customers are insignificant in
ment for members of the Board of Management. A provision for respect of Deutsche Post AG’s overall revenue.
the 2006 LTIP and the SAR Plan was recognised as at the balance
sheet date in the amount of €278 million (previous year: €203 mil- Relationships with KfW Bankengruppe
lion), of which €64 million (previous year: €25 million) was attrib KfW supports the federal government in continuing to
utable to the Board of Management. €4 million of the total provi- privatise companies such as Deutsche Post AG or Deutsche Telekom
sion (previous year: €0 million) related to rights exercisable at the AG. In 1997, KfW, together with the federal government, developed
reporting date. a “placeholder model” as a tool to privatise government-owned
companies. Under this model, the federal government sells all or
55 Related party disclosures part of its investments to KfW with the aim of fully privatising
these state-owned companies. On this basis, KfW has purchased
55.1 Related party disclosures (companies and Federal Republic shares of Deutsche Post AG from the federal government in several
of Germany) stages since 1997 and executed various capital market transactions
All companies classified as related parties that are controlled using these shares. KfW’s current interest in Deutsche Post AG’s
by the Group or on which the Group can exercise significant in- share capital is 21 %. Deutsche Post AG is thus considered to be an
fluence are recorded in the list of shareholdings, which can be associate of the federal government.
accessed on the website, www.dpdhl.com/en/investors.html, together
with information on the equity interest held, their equity and their
net profit or loss for the period, broken down by geographical areas.
Deutsche Post AG maintains a variety of relationships with
the Federal Republic of Germany and other companies controlled
by the Federal Republic of Germany.
Relationships with the Bundesanstalt für Post Relationships with the German Federal
und Telekommunikation Employment Agency
The Bundesanstalt für Post und Telekommunikation Deutsche Post AG and the German Federal Employment
(BAnstPT) is a government agency and falls under the technical Agency entered into an agreement dated 12 October 2009 relating
and legal supervision of the German Federal Ministry of Finance. to the transfer of Deutsche Post AG civil servants to the Federal
Under the Bundesanstalt-Reorganisationsgesetz (German Federal Employment Agency. In 2013, as in the previous year, this initiative
Agency Reorganisation Act), which entered into force on 1 Decem- resulted in no transfers.
ber 2005, the Federal Republic of Germany directly undertakes the
tasks relating to holdings in Deutsche Bundespost successor com- Relationships with Deutsche Telekom AG
panies through the Federal Ministry of Finance. It is therefore no and its subsidiaries
longer necessary for the BAnstPT to perform the “tasks associated The federal government holds around 32 % of the shares of
with ownership”. The BAnstPT manages the social facilities such as Deutsche Telekom AG directly and indirectly (via KfW). A control
the Postal Civil Service Health Insurance Fund, the recreation pro- relationship exists between Deutsche T elekom AG and the federal
gramme, the Versorgungsanstalt der Deutschen Bundespost (VAP) government because the federal government, d espite its non-con-
and the welfare service for Deutsche Post AG, Deutsche Postbank trolling interest, has a secure majority at the Annual General Meet-
AG and Deutsche Telekom AG, as well as setting the objectives for ing due to its average presence there. Deutsche Telekom AG is
social housing. Since 1 January 2013, the BAnstPT has undertaken therefore a related party of Deutsche Post AG. In financial year 2013,
the tasks of the special pension fund for postal civil servants (Post- Deutsche Post DHL provided goods and services (mainly trans-
beamtenversorgungskasse). The fund makes pension and assistance port services for letters and parcels) for Deutsche Telekom AG and
payments to the beneficiaries and their surviving dependents allo- purchased goods and services (such as IT products) from Deutsche
cated to the Deutsche Bundespost successor companies. Further Telekom AG.
disclosures on the special pension fund for postal civil servants
can be found in Note 7. The tasks are performed on the basis of Relationships with Deutsche Bahn AG
agency agreements. In 2013, Deutsche Post AG was invoiced for and its subsidiaries
€65 million (previous year: €70 million) in instalment payments Deutsche Bahn AG is wholly owned by the federal govern-
relating to services provided by the BAnstPT. ment. Owing to this control relationship, Deutsche Bahn AG is a
related party to Deutsche Post AG. Deutsche Post DHL has various
Relationships with the German Federal Ministry business relationships with the Deutsche Bahn Group. These
of Finance mainly consist of transport service agreements.
In financial year 2001, the German Federal Ministry of
Finance and Deutsche Post AG entered into an agreement that Bundes-Pensions-Service für Post
governs the terms and conditions of the transfer of income received und Telekommunikation e.V.
by Deutsche Post AG from the levying of the settlement payment Disclosures on the Bundes-Pensions-Service für Post- und
under the Gesetze über den Abbau der Fehlsubventionierung im Telekommunikation e. V. (BPS-PT) can be found in Note 7.
Wohnungswesen (German Acts on the Reduction of Misdirected
Housing Subsidies) relating to housing benefits granted by Relationship with pension funds
Deutsche Post AG. Deutsche Post AG transfers the amounts to the The real estate with a fair value of €1,016 million (previ-
federal government on a monthly basis. ous year: €995 million), of which Deutsche Post Betriebsrenten
Deutsche Post AG also entered into an agreement with the Service e. V. (DPRS) and / or Deutsche Post Pensions-Treuhand
Federal Ministry of Finance dated 30 January 2004 relating to the GmbH & Co. KG, Deutsche Post Betriebsrenten-Service e. V. & Co.
transfer of civil servants to German federal authorities. Under this Objekt Gronau KG and Deutsche Post Grundstücks-Vermie-
agreement, civil servants are seconded with the aim of transferring tungsgesellschaft beta mbH Objekt Leipzig KG are the legal or
them initially for six months, and are then transferred permanently beneficial owners, is e xclusively let to Deutsche Post Immobilien
if they successfully complete their probation. Once a permanent GmbH. Rental expense for Deutsche Post Immobilien GmbH
transfer is completed, Deutsche Post AG contributes to the cost amounted to €66 million in 2013 (previous year: €65 million). The
incurred by the federal government by paying a flat fee. In 2013, rent was a lways paid on time. Deutsche Post Pensions-Treuhand
this initiative resulted in 26 permanent transfers (previous year: 11) GmbH & Co. KG owns 100 % of Deutsche Post Pensionsfonds AG.
and 33 secondments with the aim of a permanent transfer in 2014 Further disclosures on pension funds can be found in Notes 7 and 44.
(previous year: 16).
was attributable to associates, €1 million (previous year: €3 mil- Share-based payment 19,393 47,208
1
Until 30 April 2012.
lion) to joint ventures and €4 million (previous year: €4 million) to 2
Since 1 May 2012.
unconsolidated companies.
• DHL Automotive Offenau GmbH 58 Declaration of Conformity with the German Corporate
• DHL Express Germany GmbH Governance Code
• DHL Express Network Management GmbH The Board of Management and the Supervisory Board of
• DHL Fashion Retails Operation GmbH Deutsche Post AG jointly submitted the Declaration of C
onformity
• DHL Foodservices GmbH with the German Corporate Governance Code for financial year
• DHL Freight Germany Holding GmbH 2013 required by section 161 of the AktG. This Declaration of
• DHL Freight GmbH Conformity can be accessed online at www.corporate-governance-
• DHL Global Forwarding GmbH code.de and at www.dpdhl.com/en/investors.html.
• DHL Global Forwarding Management GmbH
• DHL Global Management GmbH 59 Significant events after the balance sheet date
• DHL Home Delivery GmbH At the end of January, Deutsche Post DHL announced that
• DHL Hub Leipzig GmbH it had entered into a new contract with US airline Southern Air,
• DHL International GmbH thereby expanding and extending the partnership with the airline.
• DHL Logistics GmbH Lease obligations amounting to US$ 640 million will arise in this
• DHL Solutions Fashion GmbH context.
• DHL Solutions GmbH The domestic parcel business in Poland, the Czech Repub-
• DHL Solutions Großgut GmbH lic, Belgium and the Netherlands was consolidated in the MAIL
• DHL Solutions Retail GmbH division, effective 1 January 2014. This business was previously part
• DHL Supply Chain (Leipzig) GmbH of the EXPRESS and GLOBAL FORWARDING, FREIGHT divisions.
• DHL Supply Chain Management GmbH On 20 February 2014, the Board of Management, subject to
• DHL Supply Chain VAS GmbH the consent of the Supervisory Board, resolved upon an ordinary
• DHL Trade Fairs & Events GmbH increase in capital (Authorised Capital 2013) by 656,915 no par-
• DHL Vertriebs GmbH value shares in order to service the 2009 tranche of the share-based
• DHL Verwaltungs GmbH payment system for executives (Share Matching Scheme) due
• Erste End of Runway Development Leipzig GmbH on 1 April 2014. The planned dividend payment will increase by
• Erste Logistik Entwicklungsgesellschaft MG GmbH around €0.5 million as a result.
• European Air Transport Leipzig GmbH There were no other significant events after the reporting date.
• FIRST MAIL Düsseldorf GmbH
• Gerlach Zolldienste GmbH
• interServ Gesellschaft für Personal- und Beraterdienst
leistungen mbH
• nugg.ad AG predictive behavioral targeting
• Werbeagentur Janssen GmbH
• Williams Lea & TAG GmbH (formerly Williams Lea GmbH)
• Zweite Logistik Entwicklungsgesellschaft MG GmbH
RESPONSIBILITY STATEMENT
Bonn, 20 February 2014
Deutsche Post AG
The Board of Management
Dr Frank Appel
INDEPENDENT AUDITOR’S REPORT ableness of accounting estimates made by the Board of Manage
ment, as well as evaluating the overall presentation of the consoli
To Deutsche Post AG dated financial statements.
We believe that the audit evidence we have obtained is suffi
Report on the Consolidated Financial Statements cient and appropriate to provide a basis for our audit opinion.
We have audited the consolidated financial statements of
Deutsche Post AG, Bonn, and its subsidiaries, which comprise the Audit Opinion
income statement and the statement of comprehensive income, the According to § 322 Abs. 3 Satz (sentence) 1 HGB, we state that
balance sheet, the cash flow statement, the statement of changes in our audit of the consolidated financial statements has not led to
equity, and the notes to the consolidated financial statements, for any reservations.
the business year from 1 January to 31 December 2013. In our opinion based on the findings of our audit, the con
solidated financial statements comply, in all material respects, with
Board of Management’s Responsibility for Consolidated IFRSs, as adopted by the EU, and the additional requirements of
Financial Statements German commercial law pursuant to § 315a Abs. 1 HGB and give
The Board of Management of Deutsche Post AG, Bonn is a true and fair view of the net assets and financial position of
responsible for the preparation of these consolidated financial the Group as at 31 December 2013 as well as the results of oper
statements. This responsibility includes that these consolidated ations for the business year then ended, in accordance with these
financial statements are prepared in accordance with the Inter requirements.
national Financial Reporting Standards, as adopted by the EU, and
the additional requirements of German commercial law pursuant Report on the Group Management Report
to § (Article) 315a Abs. (paragraph) 1 HGB (“Handelsgesetzbuch”: We have audited the group management report of Deutsche
German Commercial Code) and that these consolidated financial Post AG, Bonn, for the business year from 1 January to 31 Decem
statements give a true and fair view of the net assets, financial po ber 2013. The Board of Management of Deutsche Post AG, Bonn, is
sition and results of operations of the group in accordance with responsible for the preparation of the group management report in
these requirements. The Board of Management is also responsible accordance with the requirements of German commercial law ap
for the internal controls as the Board of Management determines plicable pursuant to § 315a Abs. 1 HGB. We conducted our audit in
are necessary to enable the preparation of consolidated financial accordance with § 317 Abs. 2 HGB and German generally accepted
statements that are free from material misstatement, whether due standards for the audit of the group management report promul
to fraud or error. gated by the Institut der Wirtschaftsprüfer (Institute of Public Au
ditors in Germany) (IDW). Accordingly, we are required to plan
Auditor’s Responsibility and perform the audit of the group management report to obtain
Our responsibility is to express an opinion on these consol reasonable assurance about whether the group management report
idated financial statements based on our audit. We conducted our is consistent with the consolidated financial statements and the
audit in accordance with § 317 HGB and German generally accepted audit findings, as a whole provides a suitable view of the Group’s
standards for the audit of financial statements promulgated by the position and suitably presents the opportunities and risks of future
Institut der Wirtschaftsprüfer (Institute of Public Auditors in Ger development.
many) (IDW) and additionally observed the International Stand According to § 322 Abs. 3 Satz 1 HGB we state, that our audit
ards on Auditing (ISA). Accordingly, we are required to comply of the group management report has not led to any reservations.
with ethical requirements and plan and perform the audit to ob
tain reasonable assurance about whether the consolidated financial In our opinion based on the findings of our audit of the
statements are free from material misstatement. consolidated financial statements and group management report,
An audit involves performing audit procedures to obtain au the group management report is consistent with the consolidated
dit evidence about the amounts and disclosures in the consolidated financial statements, as a whole provides a suitable view of the
financial statements. The selection of audit procedures depends on Group’s position and suitably presents the opportunities and risks
the auditor’s professional judgment. This includes the assessment of future development.
of the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error. In assessing those risks, Düsseldorf, 20 February 2014
the auditor considers the internal control system relevant to the
entity’s preparation of consolidated financial statements that give PricewaterhouseCoopers
a true and fair view. The aim of this is to plan and perform audit Aktiengesellschaft
procedures that are appropriate in the given circumstances, but not Wirtschaftsprüfungsgesellschaft
for the purpose of expressing an opinion on the effectiveness of the
group’s internal control system. An audit also includes evaluating Gerd Eggemann Dietmar Prümm
the appropriateness of accounting policies used and the reason Wirtschaftsprüfer Wirtschaftsprüfer
(German Public Auditor) (German Public Auditor)
d
215 – 224
d Further Information
d FURTHER INFORMATION
217 INDEX
218 GLOSSARY
219 GRAPHS AND TABLES
220 LOCATIONS
222 MULTI-YEAR REVIEW
224 CONTACTS
224 PUBLICATION SERVICE
FINANCIAL CALENDAR
Further Information Index
INDEX
A F P
Air freight 17, 23, 26, 28, 34, 67 f., 104 Finance strategy 50 ff., 93, 97, 105, 177 Parcel Germany 16, 22, 25, 32 f., 43, 57, 62 ff., 73, 75,
Annual General Meeting 38 ff., 50, 105, 110 ff., 117, First Choice 22, 31, 35, 84, 92, 96 83, 85, 92, 94, 99, 101, 103, 105, 159
121 f., 129 ff., 174, 225 Free cash flow 59, 73, 123, 150, 167, 190 Pension Service 16, 22, 62, 85, 159
Articles of Association 38 ff., 129 f. Free float 72 f., 173 Press Services 16, 22, 24 f., 62 f., 85, 103, 159
Auditor’s report 112, 214 Freight 17, 22, 28, 34, 57, 62, 68, 85, 159, 167 Price-to-earnings ratio 71, 223
Authorised capital 39, 174, 212 Freight forwarding business 67, 84, 104 Profit from operating activities 18, 36, 43, 48, 50,
62, 135, 138, 144, 158 f., 222
B G
Q
Balance sheet 48, 55, 58, 60, 93, 98, 137, 140 ff., Global Business Services 21 f., 120, 159
144 ff., 149 ff., 155 ff., 164, 166 ff., 191 ff. Quality 17, 21, 27, 30, 32, 34, 74, 81, 83 ff., 95, 99, 103,
Global economy 44 f., 46, 91 f., 101 f., 104 110, 118
Board of Management 1 ff., 22, 38 ff., 43, 50, 73, 77,
87 ff., 96, 101, 109 ff., 114 f., 116 ff., 123 ff., 141, 174, 191, Global Forwarding 17, 22, 26, 28, 34, 57, 62, 67 f., 85,
207 f., 210 f., 212 f. 110, 159, 167
R
Board of Management remuneration 38, 42, 110, GLOBAL FORWARDING, FREIGHT 17, 21 f., 28, 34, 55 ff.,
121, 123 ff., 207 f., 210 f. 62, 67 f., 73, 75, 81, 85, 100 f., 105, 119 f., 123, 144, 158 f., Rating 51 f., 54 f., 88, 97, 105
167, 212, 222
Bonds 41, 52 ff., 59 f., 105, 144, 155, 185 f., 190 ff. Regulation 22, 47, 55, 94, 206 f.
Global Mail 16, 22, 25, 62 f., 64, 85, 103, 159
Brands 21, 85 f., 103, 140, 150, 158, 166 Responsibility statement 213
Global trade 44 f., 46 f., 101 ff., 167
Retail outlets 16, 22, 25, 33, 62, 64, 83, 159
GoGreen 79 f., 81, 83, 106
C Return on sales 18, 33, 36, 48, 62, 64, 66, 68, 70, 223
GoHelp 80
Revenue 18, 24, 33, 36, 43, 48 f., 53, 62 ff., 94, 103 f.,
Capital expenditure 27, 32, 36 f., 43, 50, 56 f., 58, 60, Guarantees 51, 54 134, 141 ff., 143, 149, 158 ff., 161, 222
81, 96, 105, 120, 158 f., 168, 189, 222
Road transport 23, 28, 79 f., 104
Capital increase 87, 212 I
Cash flow statement 37, 58, 138, 140, 189 ff., 222
Illness rate 78 S
Change of control 24 f., 125
Consolidated net profit 18, 37, 48, 50, 135 f., 138, 139, Income statement 135, 140, 144 f., 152, 154 f., 157, Segment reporting 158 f., 161
165, 176, 189, 222 161 ff., 170, 193 f.
Share capital 38 ff., 173 f., 208, 211
Consolidated revenue 18, 36, 48, 49, 135, 141 ff., 149, Income taxes 37, 50, 135 f., 138, 145 ff., 156, 160,
164 f., 223 Shareholder structure 73
158, 161, 222
Investments 27, 32, 36 f., 38, 43, 50, 56 f., 58, 81, 96, Share price 71 f., 186, 207 f.
Contingent capital 39 f., 174
105, 120, 137, 144, 147, 151, 157, 158 f., 163, 170, 189, 220 Staff costs 36, 49, 76, 135, 145, 153 f., 160, 162, 183,
Contract logistics 17, 21 f., 29 f., 35, 57, 62, 69, 85, 207, 223
104, 159, 167
L Strategy 31 ff., 79, 85 f., 99 f., 104, 109 f., 113, 121
Corporate governance 42, 107 ff., 110, 112, 117 ff., 212
Supervisory Board 38 ff., 42, 50, 87, 109 ff., 113, 116 ff.,
Cost of capital 36 f., 52, 167 Letters of comfort 51, 54 123 f., 129 ff., 174, 207, 210 ff.
Credit lines 54, 191 Liquidity management 53, 97, 191 Supervisory Board committees 109 ff., 113, 117,
Credit rating 51 f., 54 f., 88, 97, 105 119 ff., 129 f.
M Supervisory Board remuneration 42, 129 ff., 210 f.
D SUPPLY CHAIN 17, 21 f., 29 f., 35, 43, 48 f., 55 ff., 62,
MAIL 16, 21 f., 24 f., 32 f., 43, 48 ff., 55, 57, 62 ff., 73, 69 f., 73, 75, 85, 92, 100, 104 f., 119 f., 123, 143, 158 f.,
Declaration of Conformity 110, 112, 117, 212 75, 81, 83, 85, 97, 99, 101, 103 ff., 119 f., 123, 140 ff., 162, 167, 172, 222
Dialogue Marketing 16, 21 ff., 24 f., 62 f., 85, 103, 159 158 f., 167, 212, 222
Dividend 18, 37, 43, 48, 50 ff., 59 f., 71, 87, 105, 112, Mail Communication 16, 22 f., 24, 62 f., 83, 85, 103, 159 T
138, 165, 176, 190, 212, 223 Mandates 116
Market shares 23 f., 27 f., 30, 33, 55 Tax rate 146, 223
E Trade volumes 46 f., 102 ff.
N Training 33 f., 74, 76 f., 96
Earnings per share 18, 48, 50, 71, 135, 145 f., 165, 223
EBIT after asset charge 31, 36 f., 43, 50, 101, 106, 123 f. Net debt 18, 60 f., 97, 175, 223 W
Employee opinion survey 31, 37, 43, 74, 106, 110, Net gearing 61, 175, 223
117, 123 Net interest cover 60 f. WACC 36 f., 52, 167
E-Postbrief 24, 83, 95, 103, 218 Net working capital 36 f., 50 f., 58, 68, 167 Williams Lea 17, 21 f., 29 f., 57, 62, 69 f., 85, 104, 116,
Equity ratio 60 f., 175, 223 159, 167, 223
EXPRESS 17, 21 f., 26 f., 33 f., 43, 50, 55 ff., 60, 62, 65 f., Working capital 36 f., 50 f., 58, 64, 66, 68, 81, 106,
O 167, 189
72, 75, 80 f., 84 f., 99, 101, 103, 105, 119 f., 123, 143 f.,
158 f., 167, 212, 223 Ocean freight 17, 23, 28, 34, 67 f., 92, 104
Oil price 45, 102
Operating cash flow 18, 31, 37, 43, 51 f., 58, 62, 106
Opportunity and risk management 88 ff.
Outlook 43, 101 ff.
GLOSSARY
LOCATIONS
D.01 Deutsche Post DHL around the world 1
Americas Europe
Antigua and Barbuda Colombia Nicaragua Albania Greece Portugal
Argentina Costa Rica Panama Austria Hungary Romania
Aruba Dominican Republic Paraguay Belgium Iceland Russia
Bahamas Dutch Antilles Peru Bosnia and Herzegovina Ireland Serbia
Barbados Ecuador Puerto Rico Bulgaria Italy Slovakia
Belize El Salvador St Lucia Croatia Latvia Slovenia
Bermuda Guadeloupe Trinidad and Tobago Cyprus Lithuania Spain
Bolivia Guatemala Uruguay Czech Republic Luxembourg Sweden
Brazil Haiti USA Denmark Macedonia Switzerland
British Virgin Islands Honduras Venezuela Estonia Malta Ukraine
Canada Jamaica Finland Netherlands United Kingdom
Cayman Islands Martinique France Norway
Chile Mexico Germany Poland
1
Countries according to the list of shareholdings, which can be accessed on the website dpdhl.com/en/investors.
MULTI-YEAR REVIEW
D.02 Key figures 2006 to 2013
€ m 2006 2007 2008 2009 2010 2011 2012 2013
adjusted adjusted adjusted adjusted adjusted adjusted adjusted
Revenue
MAIL 15,290 14,569 14,393 13,912 13,913 13,973 13,972 14,452
EXPRESS 13,463 13,874 13,637 9,917 11,111 11,691 12,778 12,712
LOGISTICS 24,405 – – – – – – –
GLOBAL FORWARDING, FREIGHT – 12,959 14,179 11,243 14,341 15,118 15,666 14,838
SUPPLY CHAIN – 14,317 13,718 12,183 13,061 13,223 14,340 14,277
FINANCIAL SERVICES 9,593 – – – – – – –
SERVICES 2,201 – – – – – – –
Divisions total 64,952 55,719 55,927 47,255 52,426 54,005 56,756 56,279
Corporate Center / Other (until 2006: Consolidation;
until 2007: Corporate Center / Other and Consolidation) – 4,407 –1,676 1,782 1,527 1,302 1,260 1,203 1,251
Consolidation – – –3,235 –2,581 –2,340 –2,436 –2,447 –2,445
Total (continuing operations) 60,545 54,043 54,474 46,201 51,388 52,829 55,512 55,085
Discontinued operations – 10,335 11,226 1,634 – – – –
Consolidated net profit/loss for the period 2,282 1,873 –1,979 693 2,630 1,266 1,762 2,211
Employees / staff costs
(from 2007: continuing operations)
Total number of employees as at
(headcount including trainees) 31 Dec. 520,112 512,147 512,536 477,280 467,088 471,654 473,626 480,006
as at
Full time equivalents 31 Dec. 463,350 453,626 451,515 424,686 418,946 423,502 428,129 435,285
Average number of employees (headcount) 507,641 500,252 511,292 488,518 464,471 467,188 472,321 479,212
Staff costs €m 18,616 17,169 18,389 17,021 16,609 16,730 17,770 17,785
Staff cost ratio 2 % 30.7 31.8 33.8 36.8 32.3 31.7 32.0 32.3
CONTACTS PUBLICATION
INVESTOR RELATIONS Published on 12 March 2014.
Tel.: + 49 (0) 228 182-6 36 36
Fax: + 49 (0) 228 182-6 31 99
E-mail: ir @ dpdhl.com
ENGLISH TRANSLATION
PRESS OFFICE Deutsche Post Corporate Language Services et al.
Tel.: + 49 (0) 228 182-99 44
Fax: + 49 (0) 228 182-98 80 The English version of the 2013 Annual Report of Deutsche Post DHL
E-mail: pressestelle @ dpdhl.com constitutes a translation of the original German version.
Only the German version is legally binding, insofar as this does not
conflict with legal provisions in other countries.
ORDERING
EXTERNAL
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INTERNAL
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Mat. no. 675-602-349
ONLINE VERSION
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FINANCIAL CALENDAR
2014
INTERIM REPORT
JANUARY TO MARCH 2014
15 May 2014
2014 ANNUAL G
ENERAL M EETING
(FRANKFURT AM MAIN)
27 May 2014
DIVIDEND PAYMENT
28 May 2014
INTERIM REPORT
JANUARY TO JUNE 2014
5 August 2014
INTERIM REPORT
JANUARY TO SEPTEMBER 2014
12 November 2014
2015
2014 ANNUAL REPORT
11 March 2015
INTERIM REPORT
JANUARY TO MARCH 2015
12 May 2015
2015 ANNUAL G
ENERAL M EETING
(FRANKFURT AM MAIN)
27 May 2015
DIVIDEND PAYMENT
28 May 2015
INTERIM REPORT
JANUARY TO JUNE 2015
5 August 2015
INTERIM REPORT
JANUARY TO SEPTEMBER 2015
11 November 2015
dpdhl.com